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Client Onboarding Best Practices FAIS Act
What is the primary purpose of conducting a Financial Needs Analysis (FNA) as required by the General Code of Conduct?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) To identify the maximum commission the Representative can earn.
- b) To gather sufficient information to provide advice that is suitable for the client's specific needs, objectives, and financial situation.Correct
- c) To complete the Customer Due Diligence process for the FIC Act.
- d) To determine which client is the wealthiest.
Why this is the answer
The FNA is the process (required by Sec 8 of the Code) of gathering information about the client's financial situation, needs, and objectives. Its sole purpose is to form the basis for providing 'suitable' advice.
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