When providing advice to consumers on PRSAs, the requirement to gather and record relevant information about the consumer, known as Knowing the Consumer, arises from which code?

When providing advice to consumers on PRSAs, the requirement to gather and record relevant information about the consumer, known as Knowing the Consumer, arises from which code?

• A. Pensions Act, 1990
• B. Consumer Protection Code
• C. Section 785 of the Taxes Consolidation Act, 1997
• D. Minimum Competency Code

Answer: (B)

The main idea being tested is the requirement to know the consumer by gathering and recording relevant information before providing PRSA advice, as mandated by the Consumer Protection Code. The Code sets out how regulated firms must obtain sufficient information about a consumer—such as their financial situation, knowledge and experience, investment objectives, and tolerable risk—so they can assess needs and ensure any advice or product recommendation is suitable. For PRSAs, which are long-term retirement savings contracts, this information gathering and careful documentation are essential to tailor recommendations, avoid mis-sale, and demonstrate that the advice process was appropriate and compliant. Other regulations listed don’t establish this specific Know the Consumer obligation. The Pensions Act governs pension structures and rights, not the consumer-information requirement. The Taxes Consolidation Act section relates to tax matters, not adviser conduct. The Minimum Competency Code focuses on adviser qualifications and competence, not the explicit process of gathering and recording consumer information for suitability.

The main idea being tested is the requirement to know the consumer by gathering and recording relevant information before providing PRSA advice, as mandated by the Consumer Protection Code. The Code sets out how regulated firms must obtain sufficient information about a consumer—such as their financial situation, knowledge and experience, investment objectives, and tolerable risk—so they can assess needs and ensure any advice or product recommendation is suitable. For PRSAs, which are long-term retirement savings contracts, this information gathering and careful documentation are essential to tailor recommendations, avoid mis-sale, and demonstrate that the advice process was appropriate and compliant.

Other regulations listed don’t establish this specific Know the Consumer obligation. The Pensions Act governs pension structures and rights, not the consumer-information requirement. The Taxes Consolidation Act section relates to tax matters, not adviser conduct. The Minimum Competency Code focuses on adviser qualifications and competence, not the explicit process of gathering and recording consumer information for suitability.