All RE5 questions
Financial Products Apply knowledge of the financial products and services environment
In terms of product complexity, how are funeral policies and friendly-society benefits (subcategory 1.1) classified?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) As Tier 1 financial products.
- b) As derivative instruments.
- c) As Tier 2 financial products.Correct
- d) As Category II financial products.
Why this is the answer
Funeral and friendly-society benefits are simpler, lower-risk products classified as Tier 2 — which is why representatives dealing only with them are exempt from the RE5. They are not complex Tier 1 products, a licence 'category', or derivatives.
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