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Financial Products Apply knowledge of the financial products and services environment
An FSP that manages client investments on a discretionary basis (deciding what to buy and sell without referring back each time) needs which licence category?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Category II (discretionary FSP).Correct
- b) Category I only.
- c) Category III only.
- d) No category — discretionary management is unregulated.
Why this is the answer
Discretionary investment management requires a Category II licence. Category I is advice/intermediary services, Category IIA is hedge funds, and Category III is administrative (LISP-type) services.
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