CMFAS RES5 Conduct of Business & Disclosure question: financial advisory provided in respect of a Listed Specified Investment Product

CMFAS RES5Conduct of Business & Disclosure

For financial advisory provided in respect of a Listed Specified Investment Product, FAA-N16 requires the adviser to maintain records of all client communications, including:

A A summary paraphrased from memory a week later
B A file note or a tape recording of the telephone conversation
C Only the final signed application form
D Nothing, as verbal advice given by telephone is exempt from record-keeping

Show the answer and explanation

Answer: B. A file note or a tape recording of the telephone conversation

FAA-N16 requires the adviser to maintain records of all communication with the client relating to advice on a Listed Specified Investment Product, including a record in the form of a file note or a tape recording of the telephone conversation.

Common mistake

Telephone advice on a Listed SIP must be captured contemporaneously (file note or recording), not reconstructed from memory.

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Original study material mapped to the public CMFAS RES5 syllabus. Unofficial, not endorsed by MAS or SCI. Verify figures and rules against current guidance before relying on them.