A representative tells a client that an investment 'cannot lose money and will definitely double in three years'. Which duties does this most clearly breach?

RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.

1. a) The duties not to mislead and to give factually correct information, and the prohibition on guaranteeing uncertain returns.Correct
2. b) No duty at all, because optimism is good for sales.
3. c) Only a record-keeping duty, with no conduct implications.
4. d) Only the FIC Act reporting duties.