Financial Promotions Checklist – Designated Investment Business
If you answer NO to any of these questions, your financial promotion may not be compliant with regulations. If you seek our advice please be aware that this may be chargeable.
Clear, Fair and not Misleading Rules
Yes/No/NA
Is the financial promotion clearly identifiable as such?
Does the financial promotion use plain and intelligible language?
Will the financial promotion be easily understood by the average member of your target market or by whom it is likely to be received?
Does it clearly name your company or the name of the company on whose behalf the promotion is being made?
Is the information in the communication or financial promotion accurate, including any statements about your company’s size, experience or
reputation in the market place?
Are any identified risks to the customer given equal prominence in the layout to any benefits of the service that you provide, including the font
type/size used?
Is it clear that important items, statements and warnings have not been diminished, disguised or made obscure?
Does your financial promotion specify the legal name of your company as it appears on the Financial Conduct Authority Register and not just your
trading name?
If you are comparing your product or services to others, is the comparison meaningful and presented in a fair and balanced way?
If you are comparing your product or services to others, are the sources used for comparison specified?
If you are comparing your product or services to others, are all the key facts and assumptions used to make the comparison included?
Is it clear that there are no omissions that would result in information being insufficient, unclear, unfair or misleading?
Does the promotion take account of the nature of the business, the risks, the client’s commitment and the sales process?
Has the content has been approved by an authorised individual?
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Financial Promotions Checklist – Designated Investment Business
Is the information contained in the promotion consistent with other information provided to clients in the course of carrying on investment and
ancillary services?
Is the information consistently presented in the same language throughout all forms of information that are provided to each client, unless the client
has chosen differently?
Is the information up-to-date and relevant to the means of communication used?
Referring to Tax
Where a particular tax treatment is referred to, does the promotion clearly state that this depends on the individual circumstances of the client and
may be subject to change in the future?
Past and Future Performance
Where past performance has been referenced, is it not the most prominent feature of the promotion?
Does the promotion include at least 5 years past performance? *
Is the performance information based on complete 12 month periods?
Does the promotion clearly state the reference period and source of information for any past performance figures?
Does the promotion feature a prominent warning that past performance is not an indication of future performance?
Where the past performance is stated in a different currency of the state where the retail client is resident, is the currency clearly stated and is there
a warning that currency fluctuations may affect returns?
Where past performance indications are based on gross performance, are the effects of costs, commissions and fees disclosed?
Where simulated past performance has been used, is it based on the actual past performance of financial instruments or indices which are
substantially the same as the financial instrument concerned?
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Financial Promotions Checklist – Designated Investment Business
Where simulated past performance has been used, is there a prominent warning that the figures refer to a simulated past performance and are not
indicative of future returns?
Where a simulated past performance has been used, is it not the most prominent feature of the promotion?
Where a simulated past performance has been used, does the promotion includes at least 5 years of information?
Where a simulated pas performance has been used, does the promotion clearly state the reference period and source of information?
Where a simulated past performance has been used which is stated in a different currency of the state where the retail client is resident, is the
currency clearly stated and is there a warning that currency fluctuations may affect returns?
Where a simulated past performance has been used and the indications are based on gross performance, are the effects of costs, commissions and
fees disclosed?
Where future performance is indicated, are the figures not based on simulated past performance figures?
Where future performance is indicated, is it based on reasonable assumptions based on objective data?
Where future performance indications are based on gross performance, are the effects of costs, commissions and fees disclosed?
Where future performance is indicated, is the information based on performance scenarios in different market conditions (both positive and
negative)?
Where future performance is indicated, does the information reflect the nature and risks of the specific types of instruments included in the analysis?
Where future performance is indicated, is there a prominent warning that the figures are not indicative of future returns?
Other Considerations
Consider the audience that the promotion is aimed at. Can an intermediary forward this information to their clients, it may be prudent to state that
they should not share the information with retail clients. For example: “This presentation is not suitable for distribution to retail clients”
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Financial Promotions Checklist – Designated Investment Business
If the name of a competent authority (e.g. FCA) is used, does the information not indicate or suggest approval or endorsement by that authority of
the product or service?
* If 5 years past performance information is not possible, the whole period for which the product has been offered, the financial index established or
the service been offered should be referenced and should show complete 12 month periods
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