Regulatory Advice Process Flashcards
What was the primary objective of the National Strategy cor Financial Capability?
To ensure all customers had access to generic information.
What are the 5 core functions of the Money and Pensions Service?
Pension guidance
Debt advice
Money guidance
Consumer protection
Strategy
What are the 6 positive consumer outcomes that firms must achieve?
1) consumers can be confident
2) products and services
3) clear information to be provided
4) advice is suitable
5) product performance is as expected
6) consumers do not face unreasonable post sale barriers
What is the single financial guidance body in the UK?
Money and Pensions Service
What is the AMC and minimum premium of medium term and long term investment and pension products?
AMC is capped at 1.5% for the first 10 years then drops to 1%.
The minimum premium is £20.
What is a single tied agent?
Often found in banks and building societies.
Can advise on the products of one provider.
They must select the most appropriate product or service. If no product exists, they must advise they have nothing suitable.
What is a multi tied agent?
They advise on the products of various companies.
They must select the most appropriate product or service.
If no products exists they must advise they have nothing suitable.
What is an independent adviser?
Whole market access.
Can recommend any company’s products.
Can select from the whole market and obliged to recommend the best products.
What are the 4 components of the advice process?
1) first fact find meeting
2) presentation meeting
3) post advice
4) reviews and monitoring
What information must be disclosed in the fact find meeting?
Company status, services they offer and how they are paid
How long must client agreements be kept?
The longer of 5 years, the duration of the client relationship and indefinitely for pension transfers, opt outs and FSAVCs.
What products does not require a client agreement?
Stakeholder advice.
When does a client receive a principles and practices of financial management booklet?
Clients receiving with profits advice or have with profits policies.
