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Record Keeping Comply with regulated record keeping requirements
A representative resigns to join another FSP. She wants to take her client files with her, saying: 'They are my clients.' 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) She may take them, because client relationships belong to the representative.
- b) The records remain the FSP's to keep for the full retention period.Correct
- c) She may take copies, after which the FSP may destroy its own set of files.
- d) The FSP must hand the files to the FSCA, which keeps the records of departed representatives.
Why this is the answer
Record-keeping duties rest on the FSP, which rendered the services through her. It must keep the records for at least five years after the product or service ends, whoever leaves. She has no right to take the files, the FSP may not destroy its own records early, and the FSCA does not take custody of them.
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