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SIFA App 1.1 Brief definitions of terms in the Overview

SIFA App 1.1.1G

The following are brief definitions of terms used in the Overview. Before taking any action firms should also check the FSA Handbook Glossary.

Act

The Financial Services and Markets Act 2000 (FSMA)

Approved person

A person in relation to whom the FSA has given its approval for the performance of a controlled function

Client

Any person with or for whom a firm conducts or intends to conduct investment business

Controlled function

A function relating to the carrying on of investment business which is specified in the Table of controlled functions at SUP (Supervision Manual) 10.4.5R

Customer

A client who is not a market counterparty

Designated investment business

Any of the activities specified in Part II of the Regulated Activities Order which is carried on by way of business

Eligible complainant

A person eligible to have a complaint considered by the Financial Ombudsman Service as defined in DISP 2.4

Financial promotion

An invitation or inducement to engage in investment activity

Intermediate customer

A client who is not a market counterparty or a private customer and which falls within the list included in the Glossary definition

Limitation

A limitation incorporated in a Part IV permission

Low resource firm

A Category B3 firm which is not a network, has fewer than 26 financial advisers or representatives and is not permitted to carry on discretionary portfolio management

Packaged Product

a life policya unit in a regulated collective investment scheme an interest in an investment trust savings schemea stakeholder pensionWhether or not (in the case of a, b, or c) held within a PEP or an ISA

Part IV permission

Permission given by the FSA under part IV of FSMA to carry on regulated activities

Personal investment firm

A firm which was a member of PIA immediately before N2, orA firm whose permission includes a requirement that it comply with IPRU (INV) 13, or A firm for whom the most substantial part of its income is derived from (a) advising on investments or bringing about deals in investments, in relation to packaged products(b) managing investments for private customers

Personal recommendation

A recommendation given to a specific person

Private customer

A client who is not a market counterparty or an intermediate customer

Prudential requirements

The requirements and standards relating to a firm's financial resources

Regulated activity

Any of the activities specified in Part II of the Regulated Activities Order which is carried on by way of business

Requirement

A requirement included in a firm's Part IV permission

Small personal investment firm

A personal investment firm which is not a network and which has fewer than 26 financial advisers and representatives

Suitability Letter

A letter that must be provided to a private customer under COB 5.3.14R and that contains the information required by COB 5.3.16R

Threshold conditions

Any of the conditions set out in Schedule 6 to the Act (see COND)