All RE5 questions
Conflicts of Interest Code of Conduct
What is the purpose of requiring an FSP to keep a conflict-of-interest management policy?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) To set out how the FSP identifies, avoids, discloses and mitigates conflicts so clients’ interests are protected.Correct
- b) To list which clients the FSP intends to overcharge.
- c) To record the representatives’ personal investment portfolios for tax.
- d) To replace the need for any disclosure to clients.
Why this is the answer
A conflict-of-interest management policy documents how conflicts are identified, avoided, disclosed and mitigated, and how related parties and incentives are handled — protecting clients. It supplements, not replaces, the duty to disclose conflicts to clients.
Want to test yourself on 700+ more questions like this?
Start your free RE5 simulator today — timed mock exams, full answer explanations and cloud-synced progress tracking.