SIFA App 1.1 Appendix A: Brief definitions of terms in the guide
The following are brief definitions of terms used in the Guide. Before taking any action you should also check the FSA Handbook Glossary.
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Approved person |
A person in relation to whom the FSA has given its approval for the performance of a controlled function. |
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ARD |
Accounting reference date being the date to which an entity makes up its accounts or the last day of an entity's financial year. |
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Basic Advice |
The regulated activity of advising on certain relatively low cost products (stakeholder products) by means of questions. |
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Client |
Any person with or for whom a firm conducts or intends to conduct investment business. |
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Controlled function |
A function relating to the carrying on of investment business which is specified in the Table of controlled functions at SUP 10.4.5 R (Supervision Manual). |
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Customer |
A client who is not a market counterparty. |
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Designated investment business |
Any of the activities specified in Part II of the Regulated Activities Order which is carried on by way of business. |
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Eligible complainant |
A person eligible to have a complaint considered by the Financial Ombudsman Service as defined in DISP 2.4. |
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Financial promotion |
An invitation or inducement to engage in investment activity. |
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IDD |
Initial disclosure document containing information about the scope and nature of the services offered by a firm in relation to packaged products. |
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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. |
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Key facts |
The Key facts logo that must be included in the IDD and menu. |
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Limitation |
A limitation incorporated in a Part IV permission. |
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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. |
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Menu |
A fees and commission statement which a firm is required to maintain in line with COB 4.3.11 R. |
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Packaged Product |
Whether or not (in the case of a, b, or c) held within a PEP, an ISA or a CTF. |
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Part IV permission |
Permission given by the FSA under Part IV of FSMA to carry on regulated activities. |
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Personal investment firm |
A firm which was a member of PIA immediately before N2, (30 November 2001); or A 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 investment or bringing about deals in investments, in relation to packaged products (b) managing investments for private customers. |
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Personal recommendation |
A recommendation given to a specific person. |
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Private customer |
A client who is not a market counterparty or an intermediate customer. |
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Prudential requirements |
The requirements and standards relating to a firm's financial resources. |
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Regulated activity |
Any of the activities specified in Part II of the Regulated Activities Order which is carried on by way of business. |
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Requirement |
A requirement included in a firm's Part IV permission. |
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Small personal investment firm |
A personal investment firm which is not a network and which has fewer than 26 financial advisers and representatives. |
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Suitability letter |
A letter that must be provided to a private customer under COB 5.3.14 R and that contains the information required by COB 5.3.16 R. |
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Threshold conditions |
Any of the conditions set out under Schedule 6 of FSMA (see COND). |