When financial adviser service is personalised service or class service

Heading: inserted, on 1 July 2010, by section 10 of the Financial Advisers Amendment Act 2010 (2010 No 40).

15 When financial adviser service is personalised service or class service

(1)

A financial adviser service is a personalised service if—

(a)

it is given to, or in respect of, a named client or a client that is otherwise readily identifiable by the financial adviser; and

(b)

either—

(i)

the financial adviser has taken into account the client’s particular financial situation or goals (or any 1 or more of them) in providing the service; or

(ii)

a client would, in the circumstances in which the service is provided, reasonably expect the financial adviser to take into account the client’s particular financial situation or goals (or any 1 or more of them).

(2)

A service is not personalised merely because the client comes within a class of persons having predefined characteristics and the financial adviser takes the fact that the client comes within that class into account.

(2A)

Subsection (1) does not apply to a discretionary investment management service and, in this case, the service is a personalised service or a personalised DIMS if—

(a)

the service is provided to a named client or a client who is otherwise readily identifiable by the financial adviser exercising the investment authority under that service; and

(b)

the investment strategy implemented in, or to be applied under, the investment authority has been designed to take account of the client’s particular financial situation and goals or any 1 or more of them (rather than merely being customised from an investment strategy that applies to a class of clients, for example, by selecting options or by making minor changes to the class strategy or authority).

(3)

A financial adviser service is a class service if it is not a personalised service.

Section 15: substituted, on 1 July 2010, by section 10 of the Financial Advisers Amendment Act 2010 (2010 No 40).

Section 15(2A): inserted, on 1 December 2014, by section 19 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).