• INMA Chapter 9A INMA Chapter 9A Post-contractual obligations of INMA firms

    • INMA Part 9A.1 INMA Part 9A.1 Reporting to customers

      • INMA 9A.1.1 Confirmation notes — provision requirement

        (1) If an INMA firm executes a transaction in relation to a relevant investment for a customer, it must promptly give the customer a written confirmation note recording the essential details of the transaction.
        (2) This rule is subject to rule 9A.1.5.
        Inserted by QFCRA RM/2019-4 (as from 1st January 2020).

      • INMA 9A.1.2 Confirmation notes — omission of information

        (1) If:
        (a) a person fails to give an INMA firm information that the firm needs for inclusion in a confirmation note for a transaction in relation to a relevant investment for a customer; or
        (b) the transaction executed by an INMA firm in relation to a relevant investment for a customer involves a conversion of a currency into another currency and the firm has not made the conversion;
        the firm may omit the information from the confirmation note if its omission is indicated by a statement to the effect that it will be supplied later or that it cannot be supplied.
        (2) If the INMA firm gets the information later, the firm must promptly give the information to the customer.
        Inserted by QFCRA RM/2019-4 (as from 1st January 2020).

      • INMA 9A.1.3 Confirmation notes — when transaction taken to be executed

        (1) If an INMA firm executes a transaction that requires a confirmation note and the execution is outside normal market hours, the transaction is taken to be executed on the next business day.
        (2) If an INMA firm executes a series of transactions, all the transactions may be taken to be executed at the time the last transaction is executed if a record of the time that each individual transaction is executed is made (for example, by means of a time stamp).
        (3) If:
        (a) an INMA firm aggregates a transaction for a customer order (the aggregation) with an own account transaction or a transaction for another customer order; and
        (b) the firm then allocates the relevant investment under rule 9B.1.9 (Aggregation of customer orders — allocation); the aggregation is taken to have been executed at the time of allocation.
        Inserted by QFCRA RM/2019-4 (as from 1st January 2020).

      • INMA 9A.1.4 Confirmation notes — content

        A confirmation note for a transaction must include the information about the transaction required by Schedule 2.

        Inserted by QFCRA RM/2019-4 (as from 1st January 2020).

      • INMA 9A.1.5 Confirmation notes — provision requirement exemption

        (1) An INMA firm is not required to give a confirmation note to a customer for a transaction in any of the following cases:
        (a) the customer has told the firm (in writing, if the customer is a retail customer) that the customer does not wish to receive confirmation notes at all or confirmation notes for the transaction or transactions of that kind;
        (b) an arrangement is in place for the customer to make a series of payments for the purchase of units in a collective investment scheme and the transaction is part of that series;
        (c) each of the following applies to the transaction:
        (i) the firm is acting as an investment manager for the customer in relation to the transaction;
        (ii) the transaction is not a contingent liability transaction;
        (iii) the firm has taken reasonable steps to ensure that the customer does not wish to receive confirmation notes at all or confirmation notes for the transaction or transactions of that kind;
        (d) it would duplicate information al given, or to be given promptly, by another person that confirms all the essential details of the transaction (other than details relating only to the firm).
        (2) If an INMA firm relies on subrule (1) (a) or (c) in relation to the transaction, the firm must give the customer a periodic statement under rule 9A.1.7 that contains information that:
        (a) would otherwise have been required to be included in a confirmation note given by the firm to the customer for the transaction; and
        (b) is still relevant when the periodic statement is given to the customer.
        Inserted by QFCRA RM/2019-4 (as from 1st January 2020).

      • INMA 9A.1.6 Confirmation notes — recordkeeping

        An INMA firm must keep a copy of each confirmation note given to a customer for at least 6 years after the day it is given to the customer.

        Inserted by QFCRA RM/2019-4 (as from 1st January 2020).

      • INMA 9A.1.7 Periodic statements — provision requirement

        (1) If an INMA firm:
        (a) acts as an investment manager for a customer; or
        (b) operates a customer's account containing relevant investments; it must promptly, and at the intervals required by rule 9A.1.8, give the customer a written statement (a periodic statement).
        (2) The periodic statement must include the information required by:
        (a) Schedule 3, Part S3.1;
        (b) if during the period covered by the statement the firm acted as an investment manager for the customer — Schedule 3, Part S3.2;
        (c) if the statement covers a contingent liability transaction — Schedule 3, Part S3.3; and
        (d) if the statement covers a transaction relating to a structured capital at risk investment — Schedule 3, Part S3.4.
        (3) This rule is subject to rule 9A.1.9.
        Inserted by QFCRA RM/2019-4 (as from 1st January 2020).

      • INMA 9A.1.8 Periodic statements — intervals

        An INMA firm must give a customer a periodic statement at intervals no longer than:

        (a) 6-monthly;
        (b) if the customer is a retail customer and the customer's portfolio includes an uncovered open position resulting from a contingent liability transaction — monthly; or
        (c) if the customer has, on the customer's own initiative, agreed on another interval with the firm — the agreed interval or annually, whichever is shorter.
        Inserted by QFCRA RM/2019-4 (as from 1st January 2020).

      • INMA 9A.1.9 Periodic statements — provision requirement exemption

        An INMA firm need not give a customer a periodic statement if it would duplicate information al given, or to be given promptly, by another person.

        Inserted by QFCRA RM/2019-4 (as from 1st January 2020).

      • INMA 9A.1.10 Periodic statements — recordkeeping

        An INMA firm must keep a copy of each periodic statement given to a customer for at least 6 years after the day it is given to the customer.

        Inserted by QFCRA RM/2019-4 (as from 1st January 2020).

    • INMA Part 9A.2 INMA Part 9A.2 Cancelling relevant investment contracts — retail customers

      • INMA 9A.1.11 Relevant investment contracts — right to cancel

        If a retail customer buys a relevant investment as a result of advice by an INMA firm to the customer, the customer has a right, in accordance with this Part, to cancel the relevant investment.

        Guidance

        An INMA firm may voluntarily provide additional cancellation rights, or rights exercisable during a longer period than allowed under this Part, but, if it does so, these should be on terms similar to those in this Part.

        Inserted by QFCRA RM/2019-4 (as from 1st January 2020).

      • INMA 9A.1.12 Relevant investment contracts — when cancellation rights can be exercised

        (1) A retail customer may exercise a cancellation right under this Part in relation to a relevant investment made by an INMA firm with or for the customer only during the cancellation period for the investment.
        (2) For a relevant investment, the cancellation period:
        (a) starts on the later of the following:
        (i) the day the INMA firm gives the retail customer the statement required by CIPR, rule 5.3.2 (1) (d) (Investment advice for retail customers — general requirements);
        (ii) the day the INMA firm gives the retail customer a key information document required by CIPR, rule 5.4.2 (Key information documents to be given to retail customers);
        (iii) if the INMA firm is required to give the retail customer a confirmation note by rule 9A.1.1 in relation to the relevant investment — the day the firm gives the confirmation note to the customer; and
        (b) ends at the end of 14 days after that day.
        Inserted by QFCRA RM/2019-4 (as from 1st January 2020).

      • INMA 9A.1.14 Relevant investment contracts — consequences of cancellation

        (1) This rule applies if a retail customer exercises a right under this Part to cancel a relevant investment made by an INMA firm with or for the customer.
        (2) Any contract (a relevant contract) to which the retail customer is a party in relation to the relevant investment is terminated.
        (3) The INMA firm must pay the retail customer an amount equal to the total of the amounts paid by the customer under relevant contracts.
        (4) The amount must be paid to the retail customer without delay and no later than 30 days after the day the cancellation right is exercised.
        (5) The INMA firm may require the retail customer to pay the firm an amount of no more than the total of:
        (a) amounts received, and the value of property or services received, by the customer under relevant contracts; and
        (b) subject to subrules (6) and (7), losses incurred by the firm because of market movements in relation to relevant contracts if the losses are incurred on or before the day the cancellation right is exercised.
        (6) Subrule (5) (b) applies only if the INMA firm complied with the disclosure obligations under these rules in relation to the cancellation right.
        (7) Subrule (5) (b) does not apply in relation to a contract established on a regular or recurring payment basis.
        (8) An amount payable under subrule (5) is due no later than 21 days after the day the customer receives written notice from the firm requiring payment.
        (9) Any amounts payable under this rule are simple contract debts and may be set off against each other.
        Inserted by QFCRA RM/2019-4 (as from 1st January 2020).

      • INMA 9A.1.13 Relevant investment contracts — exercising cancellation right

        (1) This rule applies if a retail customer has a right under this Part to cancel a relevant investment made by an INMA firm with or for the customer.
        (2) The retail customer may exercise the cancellation right by giving written notice of the exercise of the right to the INMA firm.
        (3) Without limiting subrule (2), if the retail customer exercises the right in accordance with information given to the customer by the INMA firm, the customer is taken to have complied with the subrule.
        (4) The notice need not use any particular form of words and it is sufficient if the intention to exercise the right is reasonably clear from the notice, or from the notice and the surrounding circumstances.
        (5) The notice need not give reasons for the exercise of the right.
        (6) If the retail customer exercises the cancellation right by sending written notice to the INMA firm at the address given to the customer by the firm for the exercise of the right, the notice is taken to have been given to the firm when it is sent to the firm at that address.
        Inserted by QFCRA RM/2019-4 (as from 1st January 2020).