All RE5 questions
Financial Products Apply knowledge of the financial products and services environment
Services related to a funeral policy or friendly society benefits (Subcategory 1.1) are generally associated with which product classification in terms of complexity?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Tier 1 financial products.
- b) Category II financial products.
- c) Tier 2 financial products.Correct
- d) Derivative instruments.
Why this is the answer
The FAIS Act and Fit & Proper requirements (Sec 1) categorize products by complexity. Funeral policies (Subcategory 1.1) are deemed simpler, lower-risk products and are classified as 'Tier 2'. This is why representatives advising *only* on these products are exempt from the RE5.
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