Fair Treatment - Accepting Customers Flashcards
Client agreements (Retail vs Profess ) and exceptions
Retail = all designated investment business
Professional = Regard to MIFID business
Exception = Insurance firms issuing policies as principal
Information about the firm (All clients - including EC)
- Name and address of firm
- Authorisation of firm
- Whether firm acting through appointed representative
- Nature, frequency, and timing performance reports
- Conflicts of interest policy
Standardised format and provided Initial disclosure document before engaging
Disclosure of costs (All clients - Including EC)
Timing of disclosure
- Total price paid
- Any commissions
- Currency conversion
- Arrangements for payment
- Info compensation schemes to retail (no Pro and EC)
Timing of disclosure:
Before provision of business unless:
concluded distance at request of customer
Complaint with telephone communications
Conflicts of interest policy (All clients - Including EC)
In writing
Identifies potential conflicts
Specifies procedure in managing conflicts
Provide clients (potential clients ) with description of policy
Conflicts of Interest Policy
INC ECP
- In writing
- Identifies potential conflicts
- Specifies procedure to manage
- Provide clients with description of policy
Above correct; If they are not able to manage the conflict
Aggregation
Pre trade
Bringing together firm own account deals with client or aggregate two or more clients deals
Permitted if not to disadvantage of client
Market Arbitrage
Simultaneous buying and selling same security in different market
Limit Orders
All customers
Not executed immediately must be made public
unless client says so
Requirement to confirm transaction
RC no later than next business day
Periodic statement (RC) General rule
Prepared every three months
Periodic statement (RC) Leveraged portfolio
Prepared every month
