2nd November 2007

Resources Compliance: Compliance Tip – November 2007

• Has your Terms of Business / Client Agreement been updated?
• Have you updated your internal organisation structure to reflect the new approved persons regime?
• Have you reviewed your remuneration policy?
• Have you implemented the new client categorisations, and made notifications to clients where necessary?
• Are you aware that assessment of suitability also includes an assessment of the client’s knowledge and experience in the particular investment field? Are your advisers aware of this and has your fact find been updated to obtain this information?
• Have you updated your complaint handling procedures?
• If you have opted into MiFID have you produced a conflict of interest policy?

If you have answered “Yes” to all of the above questions you are at least part of the way there, if you have answered “No” to any of the above questions you have more work to do. Please note that most of these questions are only relevant to retail investment IFA firms, although the changes to the Complaint Handling and Training & Competence sourcebooks will affect Mortgage and Insurance intermediaries as well.

P.S. The recently published Policy Statement PS 07/18 confirms that the Apportionment and Oversight Function (CF8) will be disapplied for MiFID firms; as a result the Senior Management will have collective responsibility for this function and as such will be collectively responsible to the FSA. If you have opted in to MiFID you will need to complete a Form C to remove this function; other MiFID firms will have the function removed automatically.