I received the following enquiry from a reader. It reflects a common problem which many FSPs experience when having to determine whether a person is merely providing administrative assistance, or actually giving advice, or providing an intermediary service.
I was at one of my brokers the other day. The admin staff says that, because they are admin staff, they don’t have to write the Rep (RE 1) exam. So here is an example: a client phones a broker’s office to remove one and add a new vehicle. The new vehicle requires a tracking device, so the admin person advises the client of this. Also, the admin person offers the client various add-ons e.g. car hire, breakdown cover etc. They are not changing the actual product, just up-selling on the existing product. Does this constitute advice, necessitating writing the exam? Please advise (no pun intended!).
In case you wondered about the title of the article: here is your chance to show off your newly found knowledge.
How would you answer this enquiry?