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Financial advisory
RES5Financial Advisory Services✓Which of the following are CORRECT about dealing in overseas-listed investment products for retail customers? (a) The risk warning statement must be provided and acknowledged before the customer's first transaction in such a product. (b) The statement covers investor protection in the foreign jurisdiction, differences between legal systems, tax and currency implications and additional costs, counterparty and correspondent broker risk, and political, economic and social developments. (c) The record of the customer's acknowledgement must be kept for at least 5 years. (d) Where the firm operates no system to identify an overseas-listed product as an Excluded Investment Product, the product is treated as an Excluded Investment Product by default. Which of the following are CORRECT?
MAS Notice SFA 04-N12 paragraphs 29D to 29K with RES 1B section 2.5.1.7 and RES 2B sections 6.6.7 and 6.6.8: without a classification system the overseas-listed product is classified as a SIP, so the Customer Account Review requirement applies. Classification may be outsourced, but responsibility for it stays with the CMS licence holder. Takeaway: no classification system means SIP, which means CAR.
The default classification is SIP, and it pulls the CAR in with it.
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