When a life assurance company is providing advice to a client on PRSAs, it must comply with which Regulation?

• A. MiFID Regulations.
• B. PRSA Mediation Regulations.
• C. Consumer Protection Code.
• D. Code of Conduct for Life Assurance Companies.

Answer: (C)

When giving advice on PRSAs, the firm must follow rules that protect consumers in financial dealings. The Consumer Protection Code governs how regulated firms treat clients, ensuring fairness, clarity, and suitability of recommendations. It requires asking for the client’s financial situation, objectives, and risk tolerance; explaining PRSA features, charges, and risks in plain language; and ensuring the advice is appropriate for the client’s needs. It also mandates clear disclosures about costs and any conflicts of interest and requires proper record-keeping of the advice given.

MiFID Regulations apply to investment services broadly, which isn’t the specific framework used for PRSA advice in this context. PRSA Mediation Regulations cover mediation activities related to PRSAs, not general advisory conversations. The Code of Conduct for Life Assurance Companies is a broader industry code, but the consumer-facing conduct expectations during PRSA advice are principally set out in the Consumer Protection Code.