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Needs Analysis Best Practices Client Onboarding
Which of the following is a genuine component of a financial needs analysis?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Identifying the client’s financial situation, needs, objectives and risk profile.Correct
- b) Calculating the representative’s potential commission on the sale.
- c) Verifying the client’s identity for FIC Act purposes.
- d) Setting the premium that the insurer will charge.
Why this is the answer
A needs analysis gathers the client's circumstances, goals and risk appetite so advice can be shown to be suitable. Commission calculation, FIC identity verification and premium-setting are separate activities and not part of the needs analysis.
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