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Code of Conduct Adhere to the specific Codes of Conduct
A Representative fails to disclose the nature and source of their remuneration (e.g., commission) that will be received from the transaction. This is a direct breach of the Code of Conduct's:
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Record Keeping requirement.
- b) Disclosure requirements.Correct
- c) Financial Soundness requirement.
- d) FIC Act compliance.
Why this is the answer
The General Code of Conduct (Sec 4(1)) contains specific rules for 'Information on Product Suppliers and FSPs'. This includes the mandatory disclosure of any commission or remuneration the representative or FSP will receive as a result of the financial service provided.
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