Financial Conduct Authority (FCA) UK Regulation Sample Exam

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What key information must be included in periodic reports for retail clients?

The firm's investment strategy
Client's financial history
The firm's name
Market performance analysis

The correct answer is: The firm's name

Including the firm's name in periodic reports for retail clients is vital for transparency and accountability. Clients need to know who is managing their investments and providing them with information. This ensures that there is a clear understanding of the source of the report, which can help establish trust and authenticity. In the context of FCA regulations, firms are required to maintain a high level of transparency with clients, which also includes providing identifiable information about the firm itself in all communications. While other options such as the firm's investment strategy, client's financial history, and market performance analysis might also be useful for retail clients, they do not fulfill the basic requirement of identifying the source of the information. The firm's name establishes the identity behind the advice and reports provided, ensuring that clients can easily reach out for clarification or additional information regarding their investments.