CIPR 5.2.1 Initial disclosure document — additional requirements

(1) After the information required by rule 4.4.2, the initial disclosure document for an authorised firm that proposes to conduct investment management business must set out the following information in the following order:
(a) whether the firm can act as principal in a transaction with the customer;
(b) whether the firm charges on the basis of fees or commissions, or a combination of fees and commissions;
(c) the fees that the firm would charge, or the likely commissions that the firm would earn (or both if relevant), for the investment business that the firm offers to customers;
(d) how the firm will deal with conflicts of interest and material interests;
(e) guidance on, and appropriate warnings about, the material risks associated with:
(i) the investment business that the firm offers; and
(ii) any investment strategy that the firm follows.
(2) If the firm charges fees, the initial disclosure document must state how those fees will be calculated, paid and collected, and how frequently they are to be paid.
(3) If information about the firm's fees is not available when the firm gives a customer the initial disclosure document, the firm must give the customer the information in a separate document in good time before the customer becomes contractually bound in relation to the investment business.


Information about the relevant fees and commissions cannot be given to the customer on the same date as the customer commits to any contractual obligations.
Derived from QFCRA RM/2019-2 (as from 1st January 2020).