otázka  |
odpověď |
Ancillary Services are activities which...? začněte se učit
|
|
which are passportable only if the firm is already passported in relation to a core investment service.
|
|
|
A firm is required to categorise its clients if it is carrying on...? začněte se učit
|
|
designated investment business. określoną działalność inwestycyjną
|
|
|
If a firm provides a mix of MiFID and non-MiFID services, it must categorise clients in accordance with... začněte se učit
|
|
with the MiFID requirements. unless the MiFID business is conducted separately from the non-MiFID business.
|
|
|
The term Client includes potential clients and people acting as...? začněte se učit
|
|
as agent for another person. The client is a wide definition.
|
|
|
Under COBS, clients may be categorised as...? "COBS (Conduct of Business Sourcebook) začněte se učit
|
|
Professional client*. | Retail client. | Eligible counterparty.
|
|
|
|
začněte se učit
|
|
Note: the term customer is an umbrella term covering both retail clients and professional clients. PRE | *either per se professional clients or elective professional
|
|
|
Per se professional clients definition: začněte se učit
|
|
An entity required to be authorised to operate in the financial markets.
|
|
|
Per se professional clients examples: 3 začněte se učit
|
|
Pension fund. | Investment firm.| Governments. PIG The same as 'Eligible counterparties'. The list is longer.
|
|
|
Large undertakings are companies whose...? začněte se učit
|
|
... whose balance sheet meet certain levels.
|
|
|
Large Undertakings thresholds. For MiFID they meet any two of the following size requirements on a company basis: a balance sheet total of ___; a net turnover of ___n; or own funds of ___. 3 začněte se učit
|
|
For MiFID: a balance sheet total of €20 million; a net turnover of €40 million; or own funds of €2 million.
|
|
|
Large Undertakings thresholds. For non-MiFID business. A company whose called-up share capital is at least __? začněte se učit
|
|
|
|
|
Large Undertakings thresholds. For non-MiFID business. A company which meets any two of: a balance sheet total of ___; a net turnover of ___; an average of ___ employees začněte se učit
|
|
12.5 | 25, | 250 employees. A company which meets any two of: a balance sheet total of €12.5 million; a net turnover of €25 million; an average of 250 employees.
|
|
|
Large Undertakings thresholds. For non-MiFID business. A Trustee which has at any time during the past two years had assets of at least...? začněte se učit
|
|
|
|
|
Eligible counterparties (ECPs) examples: začněte se učit
|
|
Pension fund. | Investment firm.| Governments. PIG The same as 'Per se professional clients examples:', but there are more, like supranational organisations.
|
|
|
Eligible Eounterparty activity example. Dealing on ...? ECP začněte se učit
|
|
also: execution of orders on behalf of clients or the reception of orders.
|
|
|
Eligible Eounterparty activity example. Any _____ directly related Dealing on own account. ECP začněte se učit
|
|
also: execution of orders on behalf of clients
|
|
|
Eligible Eounterparty activity example. Arranging in relation to business which not __? ECP začněte se učit
|
|
|
|
|
When will a firm acting for another person not be treated as that person’s agent (i.e. when is the normal agency rule overridden)? začněte se učit
|
|
|
|
|
What are the exceptions where a firm acting for another person is not treated as that person’s Agent? 2 začněte se učit
|
|
if Written specific agreement. | if purpose is duties reduction. Due to specific written agreement between these parties. | If the involvement of A in the arrangement is mainly for the purpose of reducing the firm’s duties to B:
|
|
|
A retail client may be treated as an ‘elective professional client’ when: the firm has assessed their expertise, and believes that they can make their ____? Recategorising Clients začněte se učit
|
|
can make their own investment decisions
|
|
|
A retail client may be treated as an ‘elective professional client’ when any of three conditions are true. Tthis is called the ____? Recategorising Clients začněte se učit
|
|
One of these conditions: the client works in the financial services sector for at least 1 year.
|
|
|
Elective professional client Quantitative test. the client carried out, on average, ten significantly sized transactions on the relevant market in each of the past ___? Recategorising Clients začněte se učit
|
|
in each of the past four quarters
|
|
|
Elective professional client Quantitative test. The size of the client’s financial portfolio exceeds __? Recategorising Clients začněte se učit
|
|
|
|
|
Elective Eligible Counterparties. A professional client may be treated as an Elective ECP if it is an undertaking and it is a____? začněte se učit
|
|
a per se professional client and they request to be treated as an ECP.
|
|
|
Elective Eligible Counterparties. According MiFID II local authorities must, by default be classified as...? začněte se učit
|
|
so not the Elective Eligible Counterparties.
|
|
|
Elective Eligible Counterparties. Local authorities by default are classified as retail clients. They can be reclassified as an elective professional client if meet both the...? 2 začněte se učit
|
|
the Qualitative test, | the Quantitative test.
|
|
|
Elective Eligible Counterparties. Local authorities the Qualitative test. The firm undertakes an adequate ____? začněte se učit
|
|
assessment of the expertise.
|
|
|
Elective Eligible Counterparties. Local authorities the Quantitative test. The size of the authority’s financial instrument portfolio exceeds __? začněte se učit
|
|
and either of 3 additional conditions.
|
|
|
Local authorities the Quantitative test. It has carried out transactions at an average frequency of __ per quarter. začněte se učit
|
|
1 of 3 additional conditions. 2/3: the person authorised works in the financial sector for at least 1 year in a professional position
|
|
|
Local authorities the Quantitative test. The authority is an '__ authority' začněte se učit
|
|
an ‘administering authority’. 1 of 3 additional conditions. of the Local Government Pension Scheme
|
|
|
Firms must allow professional clients and ECPs to request recategorisation if ...? začněte se učit
|
|
Providing Higher Levels of Protection
|
|
|
A firm can classify a client under a different classification for different financial instruments, however, most firms will classify a client ...? začněte se učit
|
|
just once for all financial instruments. to avoid complex internal arrangements.
|
|
|
In the event a RETAIL Client has requested to be classified as an ‘elective professional client’, they will lose the many investor protections, for example:... 3 začněte se učit
|
|
Suitability.| Appropriateness. | Dealing orders. SAD
|
|
|
Where a PROFESSIONAL Client has requested to be classified as an ‘elective eligible counterparty’, they will lose the following investor protections: 3 začněte se učit
|
|
Package Products.| Appropriateness. | Order Handling. PAO
|
|
|
If a UK MiFID firm business receives an instruction to provide investment through another UK MiFID firm, it can rely on information & recommendations related to __? začněte se učit
|
|
which has responsibility for the accuracy of client information.
|
|
|
If a UK MiFID firm business receives an instruction to provide investment through another UK MiFID firm it can rely on information & recommendations related to to third-party firm, which has responsibility for the__? začněte se učit
|
|
the accuracy of client information. The firm keeps responsibility for the services.
|
|
|
Reliance on third-party firm. For non-MiFID investment firms, they can rely on information provided to it __? začněte se učit
|
|
by an unconnected authorised person.
|
|
|
|
začněte se učit
|
|
a paper or any instrument which enables the recipient to store information addressed personally to them in a way accessible for future reference.
|
|
|
Firms must enter into a written basic agreement with the client, which as to be on paper or other __ __? začněte se učit
|
|
|
|
|
Client agreement records must be maintained for whichever is the longer of: začněte se učit
|
|
5 years. | Client relationship duration. | Pension opt-out*. *in the case of a pension transfer.
|
|
|
The Requirement to Provide a Client Agreement - it applies to designated investment business for a retail client and for MiFID business and ancillary services or ___? začněte se učit
|
|
... or equivalent third-country business for a retail or a professional client.
|
|
|
What is an execution venue? začněte se učit
|
|
The entity with which client orders, assets or securities are placed or to which the Company transmits Client’s orders for execution. a stock exchange | a regulatet market | an OTF (Organised Trading Facility)
|
|
|
Information Requirements about the Firm provided prior to providing services. A firm must provide retail clients, professional clients and __? začněte se učit
|
|
for example: For MiFID business the languages in which the client may communicate. | Methods of communication. Z Statement of the fact. | Conflict of interest policy. | Ff the firm is acting through an appointed representative. | Reports nature and frequency.
|
|
|
Information Requirements Relating to Managing Investment. If a firm proposes to manage investments for a retail client, it must provide information for example about...? other examples: začněte se učit
|
|
... the valuation method of the investments in the client’s portfolio. Any delegation of the discretionary management details. |Performance benchmark. |Types of investment. | Types of transaction. | Limits. | Objectives. | Level of risk.
|
|
|
Firms holding client money or investments for retail clients, professional clients and ECPs also have to provide information about for example...? other examples: začněte se učit
|
|
... that the investments/money may be held by a third-party on the firm’s behalf. What will happen if the third-party were to become insolvent. | The firm’s responsibility for any omissions of that third-party. | Jurisdiction. | W/hat the risks may be. | A summary of the steps the firm has taken to protect the client’s money.
|
|
|
Firms must provide retail clients with information on the costs and charges in respect of services, including __ services? začněte se učit
|
|
|
|
|
Disclosure of Costs related to services provided to retail clients. Relevant cost are, for example...? *including all related fees, costs, charges and expenses and any taxes payable via the firm, which must be itemised separately in every case. začněte se učit
|
|
the total price to be paid*. also: currency | further costs in future. | How to pay. | Compensation schemes information.
|
|
|
Disclosure of Costs. Providing the details on the costs and charges is not no regulatory obligation to in case of __ __? 2 začněte se učit
|
|
of ECPs | and professional clients. this would be a commercial decision.
|
|
|
Client information should be provided in good time before the provision of services. The firm may, however, provide the information immediately after the provision of services if...? začněte se učit
|
|
... the agreement was concluded using a means of distance communication. on durable medium or a website (if made via website).
|
|
|
Compensation Information. A firm which carries on __ business must provide the information of the compensation scheme. začněte se učit
|
|
This must include the amount and scope of the cover offered by the compensation scheme.
|
|
|
