Match the regulated activity type with its description: advising on futures.

Match the regulated activity type with its description: advising on futures.

• A. Type 7
• B. Type 9
• C. Type 6
• D. Type 5

Answer: (D)

Regulated activities are categorized by type numbers, each describing a distinct service offered to clients. Advising on futures is Type 5, because this type specifically covers giving opinions, recommendations, or guidance about futures contracts. Futures are derivatives, so the emphasis is on the advice you provide—discussing potential strategies, risks, and suitability for a client—rather than on actually placing or executing orders. This is different from dealing in futures, which involves executing trades on behalf of clients (that would be Type 2). So the best match for advising on futures is Type 5.

Regulated activities are categorized by type numbers, each describing a distinct service offered to clients. Advising on futures is Type 5, because this type specifically covers giving opinions, recommendations, or guidance about futures contracts. Futures are derivatives, so the emphasis is on the advice you provide—discussing potential strategies, risks, and suitability for a client—rather than on actually placing or executing orders. This is different from dealing in futures, which involves executing trades on behalf of clients (that would be Type 2). So the best match for advising on futures is Type 5.