All RE5 questions
Financial Products Apply knowledge of the financial products and services environment
Which statement about a retirement annuity (RA) is correct for advice purposes?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) It is a long-term retirement savings vehicle with restrictions on early access designed to fund retirement income.Correct
- b) It is a short-term policy that can be cashed out freely at any time without consequence.
- c) It is a bank overdraft facility.
- d) It is a form of motor insurance.
Why this is the answer
A retirement annuity is a long-term savings vehicle aimed at funding retirement, with limits on early access (subject to legislation). It is not a freely accessible short-term product, a bank facility, or insurance against motor risk.
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 Financial Products questions
- Which licence category is held by an FSP that gives advice and/or renders intermediary…
- Under the FAIS Act, who qualifies for a Category IIA licence?
- Which of the following are 'financial products' as contemplated by the FAIS Act? i) Deb…
- When categorising products under the FAIS Act, which of the following is NOT a recognis…