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Code of Conduct Adhere to the specific Codes of Conduct
Which statement about how a provider must make disclosures to a client is INCORRECT?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) They must be adequate and appropriate in the circumstances of the particular service.
- b) They may be given after the transaction is concluded, if done within 30 days.Correct
- c) They need not be repeated to the same client unless material changes have occurred.
- d) They must be in plain language and avoid uncertainty or confusion.
Why this is the answer
Disclosures must be provided timeously, so that the client has reasonably sufficient time to make an informed decision before transacting. The 30-day period applies to confirming in writing a disclosure that was already made orally; it is not permission to disclose after the fact. The other three statements are requirements of the Code.
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