CIPR 5.3.1 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 mediation business must set out the following information in the following order:
(a) whether the firm charges on the basis of fees or commissions, or a combination of fees and commissions;
(b) the fees that the firm would charge a customer or the likely commissions that the firm would earn (or both if relevant) for the business that the firm is offering;
(c) how the firm will deal with conflicts of interest and material interests;
(d) guidance on, and appropriate warnings of, the material risks associated with:
(i) the business that the firm is offering; 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 or commissions 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 before the customer becomes contractually bound in relation to the business.

Guidance

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.
(4) The initial disclosure document must contain a statement setting out whether or not the firm is acting independently. The statement must include:
(a) the names of the product providers whose packaged investment products the firm may sell and give advice on; and
(b) a list of the categories of their products that the firm may sell and give advice on.
(5) The initial disclosure document must also set out details of any arrangements with particular product providers that prevent the firm from giving advice on packaged investment products from the whole market (or the whole of the relevant sector of the market).
Derived from QFCRA RM/2019-2 (as from 1st January 2020).