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Code of Conduct Adhere to the specific Codes of Conduct
Israel receives cash directly from a client into safe custody, without it going through a bank first. Under the FAIS General Code, what must he do?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Immediately issue written confirmation of receipt and pay the money into a designated client-funds account within one business day.Correct
- b) Issue written confirmation within one business day and deposit the money into the FSP’s own operating account within seven business days.
- c) Issue confirmation immediately but only deposit into the client account within seven business days.
- d) Immediately confirm receipt and pay the money into the FSP’s own operating account within one business day.
Why this is the answer
Money received on a client's behalf must be promptly confirmed in writing and paid, within one business day, into an account designated for client funds (kept separate from the FSP's own money). Using the FSP's operating account, or stretching the deposit to seven days, both breach the Code.
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