RBC Quiz 6

us_beta_183

Hello,

In problem #2 (with the pencil) that requires identifying RBC risk categories, the solution has "Other non-insurance subs" listed as R-sub-zero. The Odomirok text on page 242 states that "Other non-insurance subs" is part of R1.

graham

Hmm... the examiner's report says "Other non-insurance subs" can go into either R0, R1, or R2.

But now that I'm looking at this again, I'm not sure how it would ever go into R0. Let me check up on this and I'll get back to you. It could be an error in the examiner's report.

Odomirok on p242 is implies that "Other non-insurance subs" might not always go into R1. It would depend on whether the investment is a fixed income investment (R1) or an equity investment (R2). Since the question doesn't specify , you can put it either in R1 or R2.

But again, let me get back to you about putting it in R0.

us_beta_183

Thank you for looking into this. I kept digging and noticed it was not as cut and dry as I thought.

graham

I've looked into this some more and I can't see how "Other non-insurance subs" could ever go into R0. That just doesn't make sense.

But I believe it could go into R1 or R2, I suppose, depending on whether the sub is considered fixed income or equity. It would depend on the relationship to the sub, but that appears beyond the scope of what you need to know.

I will make the necessary changes to the practice template and to the pdf in the wiki.

Thanks for noticing this.

Casey

Changing a template 4 days before the exam should probably include a note somewhere in the template? Just a thought. I can't be the only one who's been practicing the wrong template for weeks.

And yes I see the note dated April 27 on the BattlePlan page but it doesn't mention that the question has a template and the template doesn't say that it's based off of that question.

graham

Thanks for bringing this to my attention. I've added more explanatory notes to the footnote and the practice template itself. Sorry for the confusion.