• INDI Part S2.3 INDI Part S2.3 Customer-facing function competencies — relevant investments

    Note

    The level of an individual's competencies must be commensurate to the nature and complexity of his or her role in the firm, the regulated activity or activities that he or she is to conduct and the specified products that those activities relate to (see rule 4.1.3 (4)).

    Derived from QFCRA RM/2014-5 (as from 1st January 2015)

    • INDI Division S2.3.A INDI Division S2.3.A Skills

      • INDI Subdivision S2.3.A.1 Advising on, and arranging deals in, investments (excluding long term insurance contracts and units in collective investment schemes)

        Examples of roles performing this function — dvising on investments

        •   financial adviser
        •   investment strategist
        •   private client investment adviser
        •   client service representative or relationship manager
        •   advising on securities or derivatives
        •   institutional sales
        •   commodities futures broker
        S2.3.1 Develop an investment strategy to meet agreed investment objectives
        S2.3.2 Analyse the risk and return profile of asset types for customers
        S2.3.3 Construct a risk profile for a proposed portfolio change
        S2.3.4 Make contact with the customers and gather and validate financial information relevant to the securities or derivatives market
        S2.3.5 Follow the initial contact process with customers and engage customers for financial advice and planning
        S2.3.6 Open an account and carry out appropriate administration for customers in the securities or derivatives market
        S2.3.7 Establish the investment objectives of customers
        S2.3.8 Analyse the customers' financial situation and assess the customers' demands, needs and investment objectives
        S2.3.9 Research and select appropriate financial solutions to inform recommendations
        S2.3.10 Advise on appropriate financial solutions and agree the next steps
        S2.3.11 Review and respond to the customers' changing financial needs and circumstances
        S2.3.12 Advise customers on investment strategy and investment selection
        S2.3.13 Monitor individual portfolio performance using appropriate comparators
        S2.3.14 Prepare investment recommendations for re-structuring an individual or corporate portfolio
        S2.3.15 Report to customers on investment performance
        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Subdivision S2.3.A.2 Managing investments

        Examples of roles performing this function — managing investments

        •   private client asset management
        •   discretionary and specialised portfolio management
        •   asset manager
        •   investment manager
        •   institutional asset manager
        •   investment banker working in asset management
        •   portfolio manager.
        S2.3.21 Develop an investment strategy to meet agreed investment objectives
        S2.3.22 Implement a defined investment strategy
        S2.3.23 Analyse the risk and return profile of asset types
        S2.3.24 Construct a risk profile for a proposed portfolio change
        S2.3.25 Make contact with the customers and gather and validate financial information relevant to the securities or derivatives market
        S2.3.26 Monitor individual portfolio performance using appropriate comparators
        S2.3.27 Review and re-structure an individual or corporate portfolio
        S2.3.28 Establish and operate individual or corporate investment portfolio performance monitoring procedures
        S2.3.29 Report to customers on investment performance
        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Subdivision S2.3.A.3 Dealing in investments

        Examples of roles performing this function — dealing in investments

        •   private client stock broker
        •   trader in securities, equities, futures or bonds
        •   securities underwriter
        •   dealing in securities or derivatives
        •   commodities futures broker
        S2.3.31 Dealing in investments following receipt of orders or instructions from customers
        S2.3.32 Dealing in investments on the firm's own account
        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Subdivision S2.3.A.4 Research and analysis as part of advising on investments or other regulated activities

        Examples of roles performing this function — research and analysis

        •   corporate finance analyst
        •   security or investment analyst
        •   derivatives analyst

        Guidance

        Before assessing an individual's research and analytical skills, rule 4.1.3 (4) requires the regulated activity or activities to be conducted by the individual to be taken into consideration in deciding how far the competencies in this Subdivision apply. If the research and analysis to be performed by the individual are not in relation to a regulated activity (for example, if the research and analysis are for publication in a newspaper article that does not constitute giving advice on investments), the individual need not be assessed against those competencies. If the research and analysis are part of conducting the regulated activity of advising on investments, the individual must be assessed against those competencies.

        S2.3.41 Analyse and report on the implications of sector economics on investments
        S2.3.42 Analyse and report on the implications of national economics on investments
        S2.3.43 Analyse and report on the implications of international economics and foreign exchange markets on investments
        S2.3.44 Carry out financial and investment analysis of an individual business
        S2.3.45 Carry out financial and investment analysis of a collective investment scheme
        S2.3.46 Provide equity capital research and analysis support for portfolio management activities
        S2.3.47 Provide fixed interest securities research and analysis support for portfolio management activities
        S2.3.48 Provide research and analysis of alternative investments support for portfolio management activities
        S2.3.49 Provide cash and currencies research and analysis support for portfolio management activities
        S2.3.50 Provide property based markets research and analysis support for portfolio management activities
        S2.3.51 Interpret and analyse a collective investment scheme's objectives and parameters
        S2.3.52 Benchmark a collective investment scheme's performance against investment objectives
        S2.3.53 Review a collective investment scheme portfolio and adjust investments within the scheme's objectives
        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

    • INDI Division S2.3.B INDI Division S2.3.B Knowledge

      • INDI Subdivision S2.3.B.1 Retail customers

        S2.3.61 The CISI Regulatory qualification
        S2.3.62 A qualification that the firm is satisfied is appropriate for the role

        Note 1 In considering a qualification for clause S2.3.62, qualifications that are recognised as appropriate for the role by another regulator may be taken into account. See rule 4.1.4 (3).

        Note 2 The firm must record and retain its assessment and any supporting evidence (see rule 4.1.4 (4)).
        Derived from QFCRA RM/2014-5 (as from 1st January 2015)

      • INDI Subdivision S2.3.B.2 Business customers

        S2.3.65 Level of knowledge appropriate for the role (which may be demonstrated by having appropriate qualifications)
        Amended by QFCRA RM/2019-4 (as from 1st January 2020).

    • INDI Division S2.3.C Experience and other elements

      S2.3.71 Experience appropriate for the role
      Derived from QFCRA RM/2014-5 (as from 1st January 2015)