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SIFA 9.11 Information about the firm

SIFA 9.11.1G

You need to disclose certain information about your firm when you conduct investment business with or for private customers, to ensure they have adequate information about the firm.

SIFA 9.11.2G

The disclosure of information is relevant to any written communications that:

  • your firm publishes; or
  • your employees, agents, representatives, financial advisers and introducers use

such as stationery, business cards, or other business documents.

Why is it important for you to disclose the information?

SIFA 9.11.3G

Disclosing information about your firm ensures that your clients know who they are conducting business with, both the identity of the firm and the employee or representative of the firm. This is in line with Principle 7 (Communications with clients), which requires you to pay due regard to the information needs of your clients and communicate information to them in a way that is clear, fair and not misleading.

What information do you need to disclose?

SIFA 9.11.4G

When you conduct investment business with private customers you should take reasonable steps to ensure that they have been given adequate information about:

  • the identity and business address of the firm;
  • the identity and status or relationship that employees - or other agents of the firm the customer may have contact with - have with the firm; and
  • the fact that the firm is authorised and regulated by the FSA (or is an appointed representative of such a firm).

This is unless you have given the information to the client on a previous occasion and it is still up to date (COB 5.5.3 R). For business involving packaged products this information is included in the IDD which is given to the private customer on first contact.

Which section of the Handbook applies?

SIFA 9.11.5G

  • the rules and guidance on information about the firm: COB 5.5;
  • a list of the information you should include in your written communications: Table 5.5.5E in COB; and
  • statutory status disclosure: GEN 4.3.1 R & GEN 4 Annex 1 R.

Statutory status disclosure

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When sending a letter or an email to a private customer you are required to disclose that your firm is 'Authorised and regulated by the Financial Services Authority'.

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If your firm is an appointed representative you are required to state '[Name of appointed representative] is an appointed representative of [name of principal] which is authorised and regulated by the Financial Services Authority'.

•

Please note that the abbreviation 'FSA' should no longer be used in this context.

•

Authorised Professional Firms may also disclose that they are regulated by their professional body, as long as - when taken together - the whole disclosure is clear, fair and not misleading.

It may be convenient for you to include the required disclosure on your letterhead.

Other considerations

SIFA 9.11.6G

If you give advice to a private customer about packaged products there are additional disclosure requirements in COB 4.3 (Disclosing information about services, fees and commission - packaged products).

SIFA 9.11.7G

There are further considerations to take into account if you:

  • • conduct overseas business for UK private customers (COB 5.5.7 R); or
  • • conduct business from an overseas place of business with overseas customers (COB 5.5.8 G).

The following sections are also relevant:

•

'Clear, fair and not misleading' - Chapter 9.2

•

'Depolarisation' - Chapter 9.7

•

PRIN 2.1 in the Handbook

If you do mortgage or general insurance business you should also refer to MOGI 2 and GIGI 3.