All RE5 questions
Financial Products Apply knowledge of the financial products and services environment
A Representative is advising a client on an endowment policy. This type of product is legally classified as an example of which financial product category?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Short-Term Insurance.
- b) Banking Deposit.
- c) Foreign Currency Exchange.
- d) Long-Term Insurance.Correct
Why this is the answer
The FAIS Act (Sec 1, Definitions) defines various financial products. An endowment policy is a life insurance product that pays out a lump sum after a specified term or on death, classifying it as a 'Long-Term Insurance' product.
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