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When following a proper advice process under FAIS, what is the FIRST thing a representative should establish with a new client?

RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.

  1. a) The nature and scope of the relationship and the services to be rendered.Correct
  2. b) Which product pays the highest commission this month.
  3. c) The client’s social-media following and marketing value.
  4. d) A signed sale before any information is gathered.

Why this is the answer

A sound advice process starts by defining the relationship and the scope of services, so the client understands what will and will not be covered, before gathering information, analysing needs, recommending, implementing and reviewing.

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