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Record Keeping Comply with regulated record keeping requirements
What must a record of advice issued to a client contain?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) A summary of the information on which the advice was based, the products considered, and the reasons the chosen product was likely to satisfy the client’s needs.Correct
- b) Only the representative’s name and the date of the meeting.
- c) Only the commission the representative will earn.
- d) Nothing in particular, as records of advice are optional.
Why this is the answer
A record of advice must capture the basis of the advice: the client information relied on, the products considered, and why the recommended product was likely to meet the client's identified needs and objectives. It is mandatory, not optional.
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