Exam Resit Flashcards
A service is a Personalised DIMS when:
Service is provided to a named client.
Investment strategy is designed to take into account the clients particular financial goals or any one or more of them.
A financial advisor service is a class service if…
It is not a personalised service.
Disclosure obligations apply to;
A personalised service made to a retail client.
Financial advisor must make disclosure regarding personalised service to retail client when?
Before providing the service or; as soon as practicable after.
AFA providing personalised DIMS to retail client, makes disclosure when?
Before the investment authority is granted and; before any exercise of the investment authority.
If not before, as soon as practicable after.
Full list of matters to be disclosed by AFA (personalised retail service):
Contact Details Type of advisor Services provided Info. Related to DIMS or Broking Fees, Material interests, Remuneration Dispute Resolution
Relevant Experience Criminal convictions Disciplinary proceedings, Adverse findings Bankruptcy or Insolvency Indemnity insurance Matters req.d under AFA Ts and Cs
Full list of matters to be disclosed by All other Fin. Advisors (personalised retail service):
Contact Details Type of advisor Services provided Info. Related to DIMS or Broking Fees, Material interests, Remuneration Dispute Resolution
General req.ts for Disclosure statements:
In writing
Preparation date
Name, address, Trading name, phone, fax, email
Provided to client or delivered to last known address
QFE must disclose:
Contact
Type of advisor
Dispute resolution
Matters Req.d under Ts and Cs
Whether QFE or QFE group member provides any other service
Disclosure under disclosure obligation and and disclosure of additional information must not be;
Misleading, deceptive, or confusing.
A disclosure is out of date if:
There has been a material change in any matter req.d to be disclosed.
A reasonable person would consider the change to affect their decision to consider, proceed with, or alter the instruction for any service.
If Disclosure is out of date an advisor must:
Cease providing a service UNLESS
Before the service is performed a new up to date disclosure is provided
OR
Additional written information is provided that when read with the original statement, updates that statement.
AFA Conduct Obligations (only)
Comply with code
Not recommend FMCA products if offer contravenes legislation
Duties when prov. DIMS to Retail
” to professional standard of care, DIMS Retail
Client Agreement, Retail DIMS
Contents and Form of Client Agreement
Req.mnt for Investment Authority, Retail DIMS
Custodial Duties under Retail DIMS
Comply with Ts and Cs of authorisation
AFA May report breach of act to FMA
Key points for AFA Conduct Obligation (FAA)
Must be a SEPERATE body corporate.
May be associated person where permitted by authorisation
Does not apply if money or property is held directly by client
Conduct Obligations, all Advisors
Care, diligence, and skill
Not engage in misleading or deceptive conduct
As above, re advertising
Specific conduct obligations for Class service to Retail - specify Class Service Warning
