20. Conduct of Business requirements Flashcards
COBS
Conduct of business sourcebook
B,M,I
Banks, mortgages ,Insurance
restricted advice
anything that is not basic advice
Execution Only business
A transaction executed upon a clients specific instruction
No advice needed
Financial promotion
An invitation or inducement to engage in investment activity
qualified investment advice
Where an adviser makes a recommendation based on a full analysis of a customer’s needs and circumstances.
simplified advice
Where a streamlined or automated process is used to gather the personal and financial information on which advice is given.
rules relating to adviser charges
Where a streamlined or automated process is used to gather the personal and financial information on which advice is given.
Designated investment business
Dealing in investment assets directly on behalf of a client.
Attitude to risk
The extent to which a customer can cope with a lack of guarantees in respect of capital values and their feelings on fluctuating returns/income levels.
Define Tolerance of risk
The extent to which a customer’s finances could cope with a loss of capital and/or income.
suitability report
A suitability report explains why the particular product recommended is suitable for the client.
