Chapter 3

Question 1

When will a name not be considered misleadin

Answer 1

Name based on past or present members of the firm or a firm with which it has merged or succeeded

Question 2

During a merger or dissolution what must the practice do

Answer 2

Notify all clients and give them the opportunity to decide what they want to do going forward
Ensure the correct level of PII (professional indemnity insurance) is in place

Question 3

What does the financial service and marketing act 2000 prohibit

Answer 3

Prohibits unauthorised persons giving investment advice

Question 4

What is inlcuded in the term investment advice

Answer 4

Investment, pension advice, advice on general insurance contracts, establish operating winding up investment scheme, personal pension scheme (carried out by way of business)

Question 5

What is the fundamental rule for CIOT and ATT with regards to investment advice

Answer 5

Being a member of CIOT and ATT does not give you authority to provide any of the ‘investment advice’ services

eg. only give advice on the tax benefits and general benefits of a pension scheme

Question 6

What is the fundamental rule if you are a member DPB (designated body) with regards to investment advice

Answer 6

Memeber of a designated body can provide a restricted range of incidenatal invetsment servies

eg. advise on the benefits of setting up a pension and comment on advice given by an authorised finacial advicer, can not make alternative product recomendations

Question 7

Who are the DPB (designated bodies)

Answer 7

The law society
Chartered accountants (ACCA/ ACA ICAS/ Ireland)
Institute of faculty of actuaries
Council for licenced conveyancers
Royal institution of chartered surveyors

Question 8

What is the fundamental rule the firm is authorised by FCA and the person is a approved

Answer 8

Can advise fully and make specific recommendations. Additional authorisation is needed before advicing on transfers or opt - outs