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TCF Adhere to the specific Codes of Conduct
Under TCF, 'Outcome 5' concerns products performing as customers were led to expect. Which scenario breaches it?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) A savings product marketed as “guaranteed growth” that in fact carries significant risk of loss.Correct
- b) A product whose documented risks were clearly explained and then materialised.
- c) A product that performed exactly as the disclosures described.
- d) A product the client chose after suitable, documented advice.
Why this is the answer
Outcome 5 is breached when a product does not perform as customers were led to expect — e.g. a 'guaranteed growth' label hiding real risk of loss. Where risks were properly disclosed and simply materialised, the outcome is not breached.
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