question  |
réponse |
Inducements rules appply to MiFID business and partly to non-MiFID business. The rules only apply to professional clients and retail client. Who is not be subject to the detailed inducement provisions? commencer à apprendre
|
|
Eligible Counter Party
|
|
|
Inducements. Minor non-monetary benefits are permitted to be received, but it must be... commencer à apprendre
|
|
... disclosed prior to the provision of the relevant service to the client. e.g. a gift from a Pension fund.
|
|
|
The inducements rules should be seen as payment rule, as it prohibits any payment, unless... commencer à apprendre
|
|
... unless expressly permitted.
|
|
|
In relation to MiFID business, firms are prohibited from paying or accepting any fees other than...? 3 >>MP3<< commencer à apprendre
|
|
Management fees*, | Proper fees**, | 3rd party fees. >>MP3<< *fees, commissions or non-monetary benefits paid by or to the client| **necessary (eg, custody costs, legal fees, settlement fees), | fees paid by third party
|
|
|
Management fees, Proper fees* and 3rd party fees are permissible only if they do not impair compliance with... custody costs, legal fees, settlement fees commencer à apprendre
|
|
... duty to act in the client’s best interests also: enhance the quality of the service, | disclosure.
|
|
|
The inducements rules have not been fully implemented for Non-MiFID business. What test must be satisfied in relation to 3rd-party payments? commencer à apprendre
|
|
the other two tests - disclosure and enhancement - do not apply.
|
|
|
Firms which produce research must apply a identifiable charge for research when providing it to an entity that is not permitted to receive research for free, that is a firm that is either providing portfolio management services or commencer à apprendre
|
|
... provides advice to a retail.
|
|
|
In scope firms may only consume research if it pays directly from its own resources or from a... commencer à apprendre
|
|
... research payment account (RPA)
|
|
|
SME Research on companies are exempt if their market capitalisation is less than... commencer à apprendre
|
|
Exemptions: SME Research | 'FICC' Research, | Independent Research Providers. | Openly Available Research. meaning that UK-based fund managers do not have to pay for SME research.
|
|
|
The FCA has applied the exemption for 'FICC' Research. FICC stan for... commencer à apprendre
|
|
... of fixed income, currency and commodity Research Exemptions: SME Research | 'FICC' Research, | Independent Research Providers. | Openly Available Research.
|
|
|
Independent Research Providers essence? commencer à apprendre
|
|
An exemption for research to be paid for when it is provided by research providers who are not engaged in execution services Exemptions: SME Research | 'FICC' Research, | Independent Research Providers. | Openly Available Research.
|
|
|
The RPA must only be used to pay for research, and not goods and/or services that do not fall into the definition of research. An example of of goods and services that the FCA does NOT consider constituting research is...? commencer à apprendre
|
|
seminar fees, | administration of an RPA, | order management services, | price feeds or historical price data
|
|
|
Research payment. Buyside firms (in scope firms) example...? commencer à apprendre
|
|
also: asset managers, pension schemes,
|
|
|
