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Record Keeping Comply with regulated record keeping requirements
The record of advice should clearly distinguish advice from intermediary services rendered. Why does this distinction matter?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Because only intermediary services need to be recorded at all.
- b) Because advice is exempt from the five-year retention rule.
- c) Because advice is taxed differently from intermediary services.
- d) Because the Code imposes specific duties on advice (such as suitability and disclosure) that differ from those for pure intermediary acts.Correct
Why this is the answer
Distinguishing advice from intermediary services matters because advice attracts specific duties (suitability, disclosure) that differ from those for administrative acts. It is not about differential taxation, both must be recorded, and advice is not exempt from retention.
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