The Regualtory Advice Framwork Flashcards
How did RDR affect advice
It removed the commission bias
Makes advice routes clearer and
improves professional standards
What does the national occupational standards define in relation to unregulated generic financial advice
Defines the boundaries
Core skills required and competencies of those who carry out GFA
What did the thoressen review of GFA find
A national, impartial money guidance service should be established
This should be multichannel
FCA should be responsible for it
What is the definition of financial capability
Being able to manage money, track finances, plan ahead, make informed decision and stay up to date
What did MAS replace in 2011
Consumer financial education body
What service is available for people to help decisions regarding pension freedoms
Pension wise
Which services will be combined in 2018
Mas, pension wise and the pensions advisory service
What is the 1st customer outcome
Consumers can be confident they are dealing with firms where the fair treatment of customers is central to the culture
What is the 2nd (products) customer outcome
Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and targeted accordingly
What is the 3rd (informations) customer out one
Customers are provided with clear unfit action and are kept appropriately informed before, during and after the point of sale
What is the 4th customer outcome (advice)
Where customers receive advice the advice is suitable and takes account of their circumstances
What is the 5th (products) customer outcome
Consumers are provided with products that perform as they have been led to expect
What is the 6th (barriers) customer outcome
Consumers do not face unreasonable post-sale barriers imposed by firms to change products, switch provider, submit a claim or make a complaint
What must be included in an initial disclosure document
Info about the status, nature of the service (restricted or independent) and how they are paid (charging structure)
What are tied agents
Can only advise on one marketing groups products
What is the definition of an independent advisor
Must offer unbiased, unrestricted advice which is not influenced by product provider or remuneration
What is the minimum level of qualification for a financial advisor
Level 4
What products were included in stakeholder products
Short term deposit accounts
Medium term investments
,King term pension product
When were stakeholder products introduced
6th April 2005
How are customers advised on stakeholder products
Basic advice based on answers to set questions, not including advice on fund choice, other investment or contribution level
What is the overriding consideration for communicating with clients
Clear fair and not misleading
When do cobs rules not apply to communications
When it is to only 1 person
Personal quotations and illustrations
When only includes a logo, short description of activities, the name of firm or a contact. Point
What is real time communication
Done in person, on the phone or other interactive communication
Who must check nrt financial promotions
Individual th appropriate level of expertise eg compliance officer
