CoBs Rules 1&2 Flashcards
An independent adviser may select a suitable product and provider for a client from an appropriate panel of product providers, rather than from the whole market.
True
If a customer decides to cancel a contract during the cooling-off period, they must always receive a full refund of all premiums or monies invested.
False
Unsolicited telephone calls to prospective customers can only be made in respect of certain investments, including packaged products.
True
A consumer buy to let mortgage is defined as one where the mortgage has not been entered into wholly or predominantly for the purpose of a business carried out by the borrower.
True
The majority of customers fall into the category of ‘eligible counterparty’.
False
The highest level of investor protection is given to retail clients.
True
Unsolicited real-time promotions are permitted under MCOB 3A: Financial promotions.
False
An adviser must ensure that a recommendation is affordable both initially and on an ongoing basis.
True
Unsolicited calls to prospective customers must not be made at weekends.
False
An advice firm can call itself independent even if it only offers advice on a certain area.
True
A key features document in respect of a specifically recommended product must be provided to the client at any time up to the end of the cooling-off period.
False
In an execution-only transaction the customer takes full responsibility for the product choice and the adviser has no duty of care to explain the risks involved.
True
