A deposit agent meets a customer for the first time. What is the FIRST document the deposit agent must give to the customer before providing any financial service for him or her?

• A. A copy of the agent's professional indemnity insurance policy.
• B. A copy of the relevant credit institution's terms of business.
• C. A summary of the various deposit accounts offered by the relevant credit institution.
• D. A Reason Why Statement.

Answer: (B)

When you meet a customer for the first time, the first document you should hand over is the terms of business of the credit institution. This document lays out the contractual framework between the bank and the client, including what services will be provided, how charges and fees are applied, the rights and duties of both sides, and how disputes or complaints are handled. Providing it first ensures the customer understands the relationship and the rules that will govern any services before you start advising or handling their money.

The other items aren’t quite right as the very first document. A copy of professional indemnity insurance is useful for reassurance but isn’t the immediate, required contract that governs the client–institution relationship. A summary of deposit accounts is helpful for product choice, but it comes after the terms of business once the customer is prepared to proceed. A Reason Why Statement isn’t a standard initial disclosure in this context.