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It is an offence for a person to communicate a financial promotion unless...? Lernen beginnen
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the person is an authorised firm. Or the promotion has been approved by an authorised firm.
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Communicating financial promotion exclusion example: other: Lernen beginnen
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home reversion plan, | non-investment insurance contract | qualifying credit.
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The purpose of the financial promotion rules is to ensure that promotions are...? Lernen beginnen
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promotions are identified as such. and that they are fair not misleading.
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Principle 6 – a firm must pay due regard to the... The financial promotion rules are consistent with Principles 6 and 7 Lernen beginnen
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... the interests of its customers and treat them fairly. FCA's Principles for Businesses (PRIN)
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Principle 7 - – a firm must pay due regard to the The financial promotion rules are consistent with Principles 6 and 7 Lernen beginnen
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... information needs of its clients FCA's Principles for Businesses (PRIN)
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The FCA can remove financial promotions immediately from the market without ...? Lernen beginnen
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without FCA’s enforcement process.
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Financial promotion FCA’s Enforcement Process essence: Lernen beginnen
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FCA can require withdrawal of a financial promotion (a ban). Firms MAY CHALLENGE the decision before it is confirmed, amended, or revoked.
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Financial promotions promotion, firms should make clear which product and services that involve... Lernen beginnen
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... a risk of capital loss. also: If some activities are not regulated by the FCA, this must be made clear.| Packaged or stakeholder products not produced by the firm must be indicated.
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Face-to-face meetings and telephone conversations. Promotions, what Methods of communication is it? Lernen beginnen
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Promotions, what Methods of communication is it? Lernen beginnen
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unsolicited real-time communications.
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emails, letters or websites Promotions, what Methods of communication is it? Lernen beginnen
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non-real-time communications.
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promotions with the specified manner of responding. Promotions, what Methods of communication is it? Lernen beginnen
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direct offer financial promotions
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Anti-Greenwashing rule and guidance came into effect in 2024. They apply to...? Lernen beginnen
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... to all regulated firms; when undertaking client communication, marketing. It covers all types of communication.
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Anti-Green washing. FCA notes that Sustainability references should be...? 3 but provide even 1. Lernen beginnen
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complete, correct and capable of being substantiated.
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Communication exlusion. Article 48 of FPO relates to...? financial promotion order (FPO). Lernen beginnen
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high-net-worth individuals
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Communication exlusion. Article 50 and 50A of FPO relate to...? Lernen beginnen
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Communications from outside the UK that would qualify for an exemption under the FPO if the overseas office were treated as...? Lernen beginnen
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as a separate unauthorised person.
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FPO. Communication is exluced for one-off promotions that are not... Financial Promotion Order (FPO). Lernen beginnen
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FPO. Communication is exluced for the Takeover... Lernen beginnen
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FPO. the exemption for excluded communications does NOT generally apply in relation to...? Lernen beginnen
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In 2023 Treasury published its consultation response to financial promotion exemptions for high net worth individual and sophisticated investors. The changes can be summarised as follows: Lernen beginnen
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Requiring businesses to provide details of themselves in any communications made using the exemptions. Updating the title by removing ‘certified’. | Updating the high net worth individual statements. | Applying these changes to collective investment schemes.
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The section of the COBS rules which deals with communications to clients, COBS 4, does not apply where the... Lernen beginnen
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Prospectus Regulation Rules apply. PRR 3.3
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Prospectus Regulation Rules PRR 3.3 applies to offers of transferable securities in respect of which: 2 Lernen beginnen
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a prospectus is required under Section 85 |or 87 FSMA.
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Prospectus advertisement must not be issued, unless: any type of communication (eg, TV, press, email, letter, text and brochure) Lernen beginnen
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it states that a prospectus has been (or will be) published. and it is clearly recognisable as an advertisement. | the information is not inaccurate. | it is consistent with the prospectus.
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Any written advertisement falling under Prospectus Regulation Rules PRR 3.3 must contain statement that it is not itself a prospectus, but... Lernen beginnen
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... but an advertisement.
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Influencers who promote a financial product without approval from an FCA-authorised firm, could be undertaking a...? Lernen beginnen
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It is an offence for an unauthorised person to communicate a financial promotion, unless the promotion is exempt or... Lernen beginnen
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or an authorised firm has approved it.
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The COBS rules on approval of financial promotions complement requirements under SYSC 3 and SYSC 4. They require a firm which communicates with a client, in relation to designated investment business or financial promotion, to... Lernen beginnen
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to puts in place systems and controls in order to comply with the rules on financial promotions.
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In 2023, the FCA introduced a ‘gateway’ for firms that wished to be able to approve promotions for third parties. Firms needed to apply to...? Lernen beginnen
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... to the FCA for permission to do so. Therefore, firms that did not obtain permission will no longer be permitted to approve financial promotions other than their own.
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Before an authorised firm approves a financial promotion for communication by an unauthorised person (using the ‘gateway’), it must confirm that... Lernen beginnen
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that it complies with the financial promotion rules. If, later, it becomes aware that it no longer complies, it must withdraw its approval.
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Firms may NOT approve __ __ financial promotions, Lernen beginnen
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not approve real-time financial promotions. personal visits, telephone conversations or other interactive dialogue.
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Authorised firms are restricted in the promotion of unregulated collective schemes, unless... Lernen beginnen
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... unless they would have been able to legitimately promote it for themselves.
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In relation to non-MiFID business, a firm is not in breach if it communicates a financial promotion that has been produced by another party and...? Lernen beginnen
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... takes reasonable care to establish that another authorised firm has confirmed that the promotion complies with the rules also: it communicates it only to the type of recipient that was intended. |A as far as it is aware, the promotion is fair, clear and not misleading.
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Communicating with Retail Clients. One of the COBS rule is that information is accurate and does not emphasise potential benefits without... Lernen beginnen
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... without prominent indication of relevant risks also: firm’s name, | information is sufficient and likely to be understood. | Information does not disguise, diminish, or obscure important items.
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Communicating with Retail Clients. For MiFID business, the data sources for the comparisons must be cited. Details must also be provided regarding... Lernen beginnen
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key facts and assumptions.
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Retal clients. In 2020, the FCA implemented temporary rules regarding the promotion of...? Lernen beginnen
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of speculative illiquid securities
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Retal clients. In 2020, the FCA implemented temporary rules regarding the promotion of speculative illiquid securities, such as...? 2 Lernen beginnen
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of mini-bonds | and preference shares
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Specific rules related to risk warnings for financial promotions of high-risk investments. Promotion of what product was BANNED for retal clients? Lernen beginnen
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Non-Mass Market Investments' (NMMI).
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Specific rules related to risk warnings for financial promotions of high-risk investments. Promotion of what product was RESTRICTED for retal clients? Lernen beginnen
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Restricted Mass Market Investments' (RMMI) ie, not permitted to non-readily realisable securities and peer-to-peer agreements.
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Risk warnings must include...? Lernen beginnen
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Stating that investors could lose all of their money invested. also: Prescribed risk summaries – should take no more than two minutes to read.
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Retal clients. What type of incetive is banned? Lernen beginnen
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ban of monetary or non-monetary benefits (ie, refer a friend or new joiner bonuses).
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Retal clients. What is the minium Cooling off period for financial promotion? Lernen beginnen
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Minimum 24 hour cooling off period for first time investors.
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Retal clients. A risk warning warning must be... Lernen beginnen
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(ie, it must include the client’s name).
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Promotions. Retail clients must self-certify they... Lernen beginnen
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... meet the criteria to receive on high-risk investments...
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Promotions. Retail clients must provide evidence, why they... Lernen beginnen
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why they believe they meet the relevant criteria.
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Promotions for Retail clients. Appropriate test - firm must not... Lernen beginnen
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... coaching investors to pass the test.
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Promotions for Retail clients. Firms must display the name of the...? Lernen beginnen
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Promotions for Retail clients. 'Approvers' must take an active role in ensuring that... Lernen beginnen
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the promotion remains compliant through the life of the promotion. Approvers' must have appropriate levels of competence and expertise. | They must to ensure compliance with appropriateness.
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Approvers' must undertake preliminary __ __ before NMMIs are promoted to retail investors. Non-Mass Market Investments Lernen beginnen
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preliminary suitability assessments
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When the FCA did publish 'final' rules in relation to the financial promotion of Cryptoassets? Lernen beginnen
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A ‘qualifying cryptoasset’ is any ‘cryptographically’ secured digital representation of value that is transferable and fungible, but does not include cryptoassets which meet the definition of...? 2 Lernen beginnen
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of electronic money | or an existing controlled investment. or an existing controlled investment.
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HM Treasury included qualifying cryptoassets within scope of the financial promotions regime. Provide an activity example: Lernen beginnen
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dealing in securities and contractually based investments arranging deals investments, | managing investments,|advising on investments,
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What is the bespoke exemption in the FPO for cryptoasset businesses registered with the FCA under the Money Laundering Regulation 2017? Lernen beginnen
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This exemption enables cryptoasset businesses which which are not authorised persons, to communicate their own cryptoasset financial promotions.
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The promotion is communicated by... Four routes to legally promoting cryptoassets to consumers. 1 of 4 Lernen beginnen
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... by an authorised person.
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The promotion is made by an unauthorised person but...? Four routes to legally promoting cryptoassets to consumers. 2 of 4 Lernen beginnen
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... but approved by an authorised person.
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The promotion is communicated by a cryptoasset business registered with the FCA under... Four routes to legally promoting cryptoassets to consumers. 3 of 4 Lernen beginnen
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under the MLRs in reliance on the exemption of the FPO. Money Laundering Regulations 2017. | Financial Promotion Order
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The promotion is otherwise communicated in compliance with... Four routes to legally promoting cryptoassets to consumers. 4 of 4 Lernen beginnen
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... an exemption in the FPO. Financial Promotion Order
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The FCA consulted on the approach that cryptoassets will be classified as... Lernen beginnen
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Restricted Mass Market Investments', meaning that they would be permitted to be mass marketed to UK consumers subject to certain restrictions.
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Cryptoassets. Restricted Mass Market Investment. A what warning is required? Lernen beginnen
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cooling off period (24 hours)
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Cryptoassets. Restricted Mass Market Investment. What incentive is banned? Lernen beginnen
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Cryptoassets. Restricted Mass Market Investment. Positive friction example: Positive frictions = regulatory "speed bumps" designed to reduce impulsive investing. Lernen beginnen
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direct offer financial promotion rules also: cooling off period (24 hours). | Self-certified sophisticated investor category will not be applied.
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Firms must ensure that information including indications of PAST PERFORMANCE is such that...? Lernen beginnen
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the past performance is not the most prominent feature.
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Past performance information. The period provided covers at least the immediately preceding...? Lernen beginnen
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Or the whole period for which the investment has been offered. | In any event, it must show complete 12-month periods.
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Past Performance information example: Lernen beginnen
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*if other than sterling | currency fluctuation warning
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What information must be provided if the Past Performance is cited gross? Lernen beginnen
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Commissions, fees, tax charges.
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When firms give figures based on simulated (notional) past performance because the product or service does not have a track record, a firm must ensure that the simulated past performance figures relate to...? Lernen beginnen
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to investment or financial INDEX. And contain a prominent warning that they relate to simulated past performance.
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Simulated Performance figures are based on the __ past performance of one or more investments or indices. Lernen beginnen
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on the actual past performance
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Firms must ensure that information containing an indication of the product possible FUTURE PERFORMANCE contains a...? Lernen beginnen
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that such forecasts are not reliable indicators of future performance.
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Firms must ensure that information containing an indication of the product possible FUTURE PERFORMANCE is based on...? Lernen beginnen
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... reasonable assumptions supported by objective data. and not based on simulated past performance. | In case of gross performance - it must disclose the commissions, fees, tax, etc.
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Direct offer promotions, for example - in a newspaper or direct mail - likely to be received by a retail client must contain prescribed information about...? Lernen beginnen
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... the safekeeping of client investments and money. also about: about the investment management, costs and charges, nature and risks, taxation. | And third-party guarantee, if relevant.
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Direct offer promotions, for example - in a newspaper or direct mail - must contain a statement that...? Lernen beginnen
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prospectus has been published. in accordance with the Prospectus Regulation. | Also: statement that the client should seek a personal recommendation if are unsure about decision.
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Direct offer promotions, for example - in a newspaper or direct mail - if a designated investment combines two or more investmentsm - it must contain information about...? Lernen beginnen
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... greater risk than those risks associated with a single component,
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A firm must not initiate an UNWRITTEN PROMOTION to a particular person outside its premises, unless the individual does so...? Lernen beginnen
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does so at an appropriate time of day identifies themselves and their firm at the outset and makes the reason for the contact clear. | Gives the client a contact point. | Clarification of whether the client would like continu
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Cold calling' refers to the practice of authorised persons contacting people without a prior appointment with a view to communicating...? Lernen beginnen
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Firms must not cold call unless the recipient has an existing client relationship with the firm and would...? Lernen beginnen
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would envisage or would expect to receive such a call also: the call relates to a generally marketable packaged product.| It relates to a controlled activity
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Firms are not permitted to communicate or approve financial promotions for overseas firms, unless... Lernen beginnen
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unless the promotion sets out which firm has communicated the promotion. and: protection rules. | extent to of UK compensation scheme. | Details of any overseas compensation if any.
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ELEMENTS of FCA Consumer Duty are: 3 Lernen beginnen
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A consumer principle*. | 3 cross-cutting rules. | Four outcomes. *good outcomes for retail customers.
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3 One of Consumer Duty elements Lernen beginnen
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Foreseeable harm avoiding. | Customers financial objectives enabling. | Good faith acting towards customers. FCG
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4 OUTCOMES of Consumer Duty are: 4 Lernen beginnen
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Customer understanding. | Customer support. | Product governance. | Price and value.
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Appointed Representative can be ___? Exemptions Lernen beginnen
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(ie, a natural person or any other legal person)
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