Lesson 25 - Regulation affecting advice

Question 1

What is the bribery act and what are the repercussions?

Answer 1

Rewards (financial or material) to gain a business advantage.
Active bribery - giver of the bribe.
Passive - person receiving the bribe.

Unlimited fines
Prison sentence.

Question 2

What is professional indemnity insurance

Answer 2

All advisors must carry it unless you have greater than 50m in assets.

Covers - protects you against professional advice. Negligence for the broker or staff
Ombudsman scheme 150k at least covered.
Heavy excesses.
Retrospectively - covers previous advice.
If holding onto client money - seperate bank account so interest goes to the client.

Question 3

GDPR - what are the 6 principles

Answer 3

Principles:
1. lawfullly processed.
2. Collected for a legitimate reason.
3. Adequate & relevant.
4. Accurate.
5. Kept no longer than necessary
6. Secure.

Question 4

GDPR - what are the 6 requirements

Answer 4

Must have:

1. Consent.
2. Contract
3. Legal
4. Vital interest (bllod donor)
5. Interest of the public (police)
6. Legitimate interest