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P0 Q158

N

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?

Thx!
 
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.

Thanks.
 
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