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Record Keeping Comply with regulated record keeping requirements
A representative advised a client to buy a living annuity in 2015. The client is still drawing an income from it in 2026. The FSP wants to destroy the 2015 record of advice to save space. May it?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Yes, because more than five years have passed since the advice.
- b) No. The five years start only once the product ends.Correct
- c) Yes, provided the client has received annual statements since then.
- d) No, because living annuity records must be kept for ten years.
Why this is the answer
For a product that continues, the five-year retention period runs from when the product or service ends, not from when the advice was given. While the client is still invested, the record must be kept. There is no separate ten-year rule for living annuities.
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