The Regualtory Advice Framwork Flashcards Preview

R01 > The Regualtory Advice Framwork > Flashcards

Flashcards in The Regualtory Advice Framwork Deck (51)
Loading 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


How long must nrt FP records be kept

Indefinitely for pension things
6 years for life and pension contracts
5 years in all other cases for mifid
3 years in all other cases for non mifid


What must FP records contain

Copy of the item and name of person who checked it


What must firms take care to ensure with regards to real time FP

Make clear purpose of promotion, identify themselves and their firm at start
Must check whether they want to proceed
Must give recipient a point of contact
Don't communicate at unsocial hour without permission


What is the proper name for cold calling

Unsolicited real time FP


What rules are online advertising subject to

E-commerce directive


What should you do if a client refuses to share some info

Record this no consider whether to continue doing business