All RE5 questions
Financial Products Apply knowledge of the financial products and services environment
A representative's client asks for advice on four things. On which of them is advice a financial service under FAIS? i) A long-term insurance policy. ii) A residential lease she is about to sign. iii) A unit trust. iv) A new car she wants to buy.
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Statements i, iii and iv
- b) All four statements
- c) Statement i only
- d) Statements i and iiiCorrect
Why this is the answer
Long-term insurance policies and participatory interests in collective investment schemes are financial products under FAIS. A lease and a car are not, so advice on them is not a FAIS financial service.
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