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Code of Conduct Adhere to the specific Codes of Conduct
Lwazi gives a client advice orally, and the client proceeds to buy the recommended product. What does the General Code require Lwazi to do about confirming that advice in writing?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Reduce the advice and the basis for it to writing and provide it to the client within 30 days.Correct
- b) Confirm the advice in writing within 7 days.
- c) Email the client before processing the very first premium, or else do nothing further.
- d) Do nothing, since product documentation is available on request anyway.
Why this is the answer
Where advice is given orally and acted upon, the Code requires the provider to confirm the advice in writing within 30 days. Seven days is too short, and merely relying on product documents 'on request' does not meet the written-confirmation duty.
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