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).