P0 Q158

Discussion in 'Practice modules' started by Nutan, Oct 30, 2011.

  1. Nutan

    Nutan Member

    Question 158 asks:

    Which of the following would require FSA authorisation?

    A Advice to an employer on the design of a pension scheme
    B Advice to a colleague on the choice between annuities and a personal pension
    C Advice on the decision between life insurance products offered by two different companies
    D Advice about how swaps can be used to hedge long term liabilities

    I thought the answer would be C because it relates to specific products but the answer is D. I am surprised as I thought that would count as generic advice - the general use of swaps for hedging. Can anyone explain why the answer is D please?

  2. Nutan

    Nutan Member

    I have asked a colleague about this - a senior actuary who is knowledgeable about regulation - and he thinks that the answer should be C rather than D. Please could someone from Acted clarify if this is a mistake please.


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