IMC Chapter 3 - 3.1 - Contextual Points Flashcards
Which firms do the conduct of business rules apply to?
The Conduct of Business rules apply to all authorised firms which carry on the following activities:
- Long-term insurance business in relation to life policies
- Designated investment business
Who are the promotion rules applied to on a limited basis?
Firms accepting deposits
What does the term designated investment business’ cover?
The term ‘designated investment business’ covers fewer activities than the full range of ‘regulated activities’ (as defined in FSMA 2000).
Who does the conduct of business rules apply indirectly to?
The appointed representatives within a firm.
List the 2 categories which fall under an appointed representative.
- A party to a contract with an authorised person (his/her principal) which permits or requires him to carry on business.
- Someone for whose activities the authorised person has accepted responsibility in writing
Who is directly responsible for the acts and omissions of appointed representatives?
A firm
What do many of the Conduct of Business rules distinguish between?
Designated investment business and MiFID business
Is MiFID business a narrower or broader range of activities than designated investment business
MiFID business is a much narrower range of activities than designated investment business
Is MiFID business as a subsection of designated investment business?
Yes
What form does the FCA state that a firm should provide information in?
A durable form.
What counts as a durable form or medium?
- Paper
- Any instrument which enables the recipient to store information in an accessible way for future reference which allows the unchanged reproduction of information stored. Examples of this are:
- Floppy disks
- CD-ROMs
- DVDs
- Hard drive of the recipient’s computer
But NOT internet websites unless they fulfil the criteria in this definition.
