What must be done with 'Reason Why' statements for a trainee adviser under Minimum Competency Code?

• A. They must be checked and signed off by a qualified person.
• B. They must be signed by the client.
• C. They must be stored for records.
• D. They are not required.

Answer: (A)

The key idea is accountability and validation of trainee work under the Minimum Competency Code. Reason Why statements are the trainee’s documented justification for a recommended course of action, showing the trainee’s thinking about why a particular product, strategy, or approach fits the client’s needs and complies with standards.

Under the Minimum Competency Code, these statements must be checked and signed off by a qualified person. This supervisor or mentor review provides an authoritative check that the trainee has correctly reasoned through the advice, that the justification is appropriate, and that it meets regulatory and organizational requirements. The sign-off creates a documented gate before the advice is delivered, helping ensure quality and accountability.

Client signing or simply storing the statements may be part of broader record-keeping or consent processes, but they are not the mandated action that satisfies the requirement for these Reason Why statements. The essential step is the review and formal sign-off by a qualified person.