Which of the following is the correct code underpinning the requirement to know the consumer in PRSA advice?

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Multiple Choice

Which of the following is the correct code underpinning the requirement to know the consumer in PRSA advice?

Knowing the consumer is essential to giving PRSA advice that fits their needs and circumstances. The Consumer Protection Code is the rulebook that requires financial service firms to treat customers fairly and to gather and use enough information about the consumer’s financial situation, needs, objectives, and knowledge/experience to assess suitability and explain features, risks, and costs clearly. In practice, this means advisers must obtain a full picture of the consumer before recommending a PRSA, ensure the recommendation is appropriate, and communicate openly about what is being proposed. The other options don’t establish this specific know-your-consumer duty: the Pensions Act 1990 governs pension schemes broadly, the Minimum Competency Code covers adviser qualifications, and the Taxes Consolidation Act is tax legislation.

Knowing the consumer is essential to giving PRSA advice that fits their needs and circumstances. The Consumer Protection Code is the rulebook that requires financial service firms to treat customers fairly and to gather and use enough information about the consumer’s financial situation, needs, objectives, and knowledge/experience to assess suitability and explain features, risks, and costs clearly. In practice, this means advisers must obtain a full picture of the consumer before recommending a PRSA, ensure the recommendation is appropriate, and communicate openly about what is being proposed. The other options don’t establish this specific know-your-consumer duty: the Pensions Act 1990 governs pension schemes broadly, the Minimum Competency Code covers adviser qualifications, and the Taxes Consolidation Act is tax legislation.

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