RE5 Topic 8 Quiz 1

Which one of the following statements regarding representation of information is correct?

The General Code of Conduct lays down certain steps to be followed when giving advice to a client in respect of financial products. If a representative takes the following steps in the order given, which sets of steps will be correct?

• i. Firstly, she ensures that the client is comfortable, then she asks for records of all existing financial products and investments.
• ii. Firstly, she gathers information about the customer’s financial situation and objectives then she does an analysis of the information.
• iii. Her third step is to analyse the information and then explain the possible limitation of advice.
• iv. Her third step is to identify the products that may be suitable and then disclose any replacement options and all costs.

A representative recommends that his client replace his existing motor vehicle insurance policy with a similar policy. Which of the following information is the representative to provide the client when recommending replacement of a product?

• i. Fees and charges in respect of the replacement product.
• ii. Special terms and condition which may be applicable to the replacement product.
• iii. Reasons of why the replacement product is more suitable to the client.
• iv. Difference between tax implications of the replacement product.

The General Code of Conduct lay down specific requirements regarding the disclosures that must be made to clients. Which of the following statements are correct?

• i. Financial advice given to a client verbally must be confirmed in writing within 15 days.
• ii. The representative must disclose whether he/she is rendering services under supervision.
• iii. Disclosures are one of the elements of an ethical approach to financial services.
• iv. All of the above

In order for an FSP to satisfactorily resolve a client complaint, various requirements must be in place.  In this regard, which of the following statements are true?

• i. The Financial Services Provider must reduce the client complaint to writing if given by the client verbally.
• ii. The client must be told what further steps can be taken should they not be satisfied with the outcome of their complaint.
• iii. If the FSP disputes the complaint, the client must submit the complaint to the Ombud within six months.
• iv. The Ombud can decline a complaint if the affected client has already attempted to resolve it with the responsible Financial Services Provider.