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Record Keeping Comply with regulated record keeping requirements
A representative advises a client by telephone. The FSP keeps a voice recording of the call instead of a written record of advice. A year later the client disputes what was said and asks for the record. Which statement is correct?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) That is never acceptable, because a record of advice must be on paper.
- b) That is acceptable only for short-term insurance, not for investments.
- c) That is acceptable provided the client later signs a written transcript of the call.
- d) Acceptable, if the recording is accessible and can readily be put into writing.Correct
Why this is the answer
The Code allows records to be kept in an appropriate electronic or recorded form, provided they are accessible and readily reducible to written or printed form, and kept safe for the retention period. A voice recording can therefore serve as the record, as long as it contains what a record of advice must contain.
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