IMC Chapter 3 - 3.5 - Firm Information Flashcards
List the 6 types of Information about the firm and its services that a firm must provide a client with.
1) Name and address of the firm and appropriate contact details
2) Method and language of communication
3) Statement that the firm is authorised (and the name of its competent authority i.e. regulator)
4) Whether the firm is acting through an appointed representative (or a tied agent)
5) Details of occasional and periodical reporting
6) Conflicts of interest policy
What is the name of the document which contains information about the firm, its services, the investments, fees and charges?
Initial Disclosure Document (IDD)
Name the 5 things a firm must provide a retail client with when they proposes to manage the client’s investments.
1) The method and frequency of valuation of the client portfolio
2) Details of any third party who may provide the discretionary management
3) Information of any benchmark against which the performance of the client portfolio will be compared
4) The types of designated investments that may be included in the client portfolio and the types of transactions that may be carried out in those designated investments
5) The management objectives, the level of risk and any specific constraints on the management of the portfolio
List the 3 rules around the timing of the Information the firm provides to clients.
1) The firm must make these disclosures in good time before the provision of services.
2) The disclosure of information can be made immediately after starting to provide services if by request of the client the
agreement was concluded through distance marketing.
3) Clients must be informed of any material changes by durable medium in good time.
List the 2 rules around the medium via which the information is provided to clients.
The information should be provided:
1) In a durable medium; or
2) On the website, where the website conditions have been fulfilled
