Which regulation governs advice on PRSAs?

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

Answer: (C)

The main idea here is that consumer protection for financial advice falls under a broad, overarching framework that governs how advisers interact with retail customers. The Consumer Protection Code sets out the rules for how advisers must present information, assess a client’s needs, ensure recommendations are suitable, disclose costs and terms clearly, and handle complaints. Because PRSAs are consumer-oriented long-term savings products, advice about them is regulated under this code to safeguard the customer throughout the advisory process.

MiFID Regulations focus on investment services and instruments and may apply in certain contexts, but PRSAs are a life-insurance-based saving product rather than a standard investment product, so the CPC is the more directly relevant framework for PRSA advice. The PRSA Mediation Regulations and the Code of Conduct for Life Assurance Companies address specific aspects of disputes or conduct within life offices, but they do not provide the comprehensive guidance on advice to retail clients that the Consumer Protection Code does.