All RE5 questions
Record Keeping Comply with regulated record keeping requirements
A representative keeps his clients' needs analyses only in a notebook at his home. The notebook is stolen in a burglary. 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) The FSP failed in its record-keeping duty; records belong in its own systems.Correct
- b) The FSP complied, because the notes existed until they were stolen.
- c) Only the representative is at fault, because the notebook and the notes in it were his own property.
- d) Nobody is at fault, because the theft was a crime beyond anyone's control.
Why this is the answer
The FSP must keep records safe and available in its own controlled systems for the full period. Letting the only copy of records sit in a representative's personal notebook at home left them unprotected, so the FSP's systems failed. The FSP, not just the representative, is responsible for its records.
Want to test yourself on 700+ more questions like this?
Start your free RE5 simulator today — timed mock exams, full answer explanations and cloud-synced progress tracking.
More Record Keeping questions
- An FSP advised a client on a unit trust in 2016. The client sold the whole investment,…
- An FSP scans all client documents, stores them in a cloud system and shreds the paper o…
- An accountable institution ends its business relationship with a client on 30 June 2022…
- An adviser gives a client detailed advice by telephone. The client accepts it and the t…