INMA 9B.1.12 Dealing and managing — excessive dealing and switching

(1) This rule applies to the following investment products:
(a) a life policy (that is, a long term insurance contract other than a reinsurance contract or a pure protection contract);
(b) a long term care insurance contract;
(c) a unit in a collective investment scheme.
(2) An INMA firm must not do any of the following with such a frequency, or in such amounts, that the transactions may be regarded as excessive:
(a) in the exercise of its discretion, execute a transaction in relation to a relevant investment for a customer;
(b) advise a customer to enter into a transaction in relation to a relevant investment;
(c) advise a retail customer to switch within between products to which this rule applies or make or arrange a switch that gives effect to such advice; or
(d) in the exercise of its discretion, make or arrange a switch within those products for a retail customer.
(3) In complying with subrule (2), the INMA firm must be able to demonstrate that the transactions were fair, reasonable and in the customer's best interests when they were entered into, viewed both in isolation and in the context of earlier transactions.
Inserted by QFCRA RM/2019-4 (as from 1st January 2020).