Qualified Financial Adviser (QFA) Regulations Exam 2 Practice Test

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Which statement accurately describes intermediary services under FAIS?

Intermediary services refer only to auditing.

Intermediary services include selling or distributing a financial product.

Intermediary services under FAIS are the activities that bring a client and a financial product together, and this includes selling or distributing the product. This captures the practical work of placing a product into a client’s hands. Auditing is not an intermediary service; audits are a separate function. Intermediary services are by definition connected to financial products, not unrelated to them. And they are not limited to non-residents—FAIS applies to anyone offering these services to clients in the regulatory framework, regardless of residence.

Intermediary services are unrelated to financial products.

Intermediary services are only allowed for non-residents.