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Financial advisory
RES5Financial Advisory Services✓A retail customer fails the Customer Knowledge Assessment but insists on buying a structured OTC derivative. The licensee may proceed only if:
Under Notice SFA 04-N12 paras 23 and 24 (RES 2B 6.6.3), a customer assessed as lacking knowledge or experience in an unlisted SIP must be told the outcome in writing, and the licensee cannot transact for him unless it is also an exempt financial adviser and gives advice to the standards in Notice FAA-N16. If he then picks a product the adviser did not recommend, FAA-N16 paras 24 and 25 add his written confirmation and senior-management approval. A signed waiver, a higher fee or central clearing is no substitute. Separately, he may qualify by passing an approved learning module (04-N12 Annex 3 para 2).
For an unlisted SIP, a failed CKA means advice first. A signature or a fee never replaces it.
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