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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? Lernen beginnen
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Eligible Counter Party
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Inducements. Minor non-monetary benefits are permitted to be received, but it must be... Lernen beginnen
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... disclosed prior to the provision of the relevant service to the client. e.g. a gift from a Pension fund.
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The inducements rules should be seen as payment rule, as it prohibits any payment, unless... Lernen beginnen
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... unless expressly permitted.
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In relation to MiFID business, firms are prohibited from paying or accepting any fees other than...? 3 >>MP3<< Lernen beginnen
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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
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Management fees, Proper fees* and 3rd party fees are permissible only if they do not impair compliance with... custody costs, legal fees, settlement fees Lernen beginnen
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... duty to act in the client’s best interests also: enhance the quality of the service, | disclosure.
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The inducements rules have not been fully implemented for Non-MiFID business. What test must be satisfied in relation to 3rd-party payments? Lernen beginnen
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the other two tests - disclosure and enhancement - do not apply.
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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 Lernen beginnen
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... provides advice to a retail.
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In scope firms may only consume research if it pays directly from its own resources or from a... Lernen beginnen
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... research payment account (RPA)
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SME Research on companies are exempt if their market capitalisation is less than... Lernen beginnen
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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.
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The FCA has applied the exemption for 'FICC' Research. FICC stan for... Lernen beginnen
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... of fixed income, currency and commodity Research Exemptions: SME Research | 'FICC' Research, | Independent Research Providers. | Openly Available Research.
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Independent Research Providers essence? Lernen beginnen
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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.
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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...? Lernen beginnen
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seminar fees, | administration of an RPA, | order management services, | price feeds or historical price data
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Research payment. Buyside firms (in scope firms) example...? Lernen beginnen
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also: asset managers, pension schemes,
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