DISC 8 Non-authorised persons – additional general obligations

A firm which is an unauthorised person must, in relation to all elements of its business relating to activities within the scope of DISC: 

1. (1) act with integrity;
2. (2) act with due skill, care, and diligence;
3. (3) take reasonable care to organise its affairs responsibly and effectively, with adequate risk management systems;
4. (4) arrange adequate protection for the assets of retail investors when it is responsible for them; and
5. (5) deal with the FCA in an open and cooperative way, and disclose to the FCA appropriately anything relating to itself and its activities of which the FCA would reasonably expect notice.

1. (1) The requirements set out in DISC 8.1.2R do not apply to the operator of a recognised scheme with respect to the operation of the scheme.
2. (2) Where the unauthorised person is a closed-ended investment fund which is a listed company, compliance with the listing principles in UKLR 2.2.1R, where they apply, will substitute compliance with DISC 8.1.2R.

1. (1) A manufacturer who is an unauthorised person must ensure, in relation to each consumer composite investment it manufactures:
   1. (a) there is a product approval process in place that ensures the consumer composite investment:
      1. (i) is designed to meet the identified needs, characteristics and objectives of the retail investors in its target market; and
      2. (ii) will provide fair value to the retail investors in its target market;
   2. (b) an appropriate assessment is carried out in respect of all relevant risks posed by the consumer composite investment to retail investors, including in particular consumers with characteristics of vulnerability; and
   3. (c) the distribution strategy for the consumer composite investment is appropriate, having regard to the consumer composite investment's target market and to the risks posed by the consumer composite investment to retail investors.
2. (2) The requirement in (1)(a)(ii) does not apply if the consumer composite investment is an investment in a recognised scheme.

As part of the policies and procedures in DISC 8.3.1R, a firm must: 

1. (1) publish clear information about its complaints handling procedures, including information on how to submit a complaint, the circumstances in which a complaint may be forwarded to another firm and on any alternative dispute resolution mechanism that may be available;
2. (2) ensure that a retail investor is able to submit a complaint free of charge and without unreasonable barriers, including in particular:
   1. (a) unreasonable additional costs to the complainant;
   2. (b) steps which are unreasonably onerous, time-consuming, complex or difficult for a retail investor to understand; or
   3. (c) asking the retail investor for unnecessary information or evidence.

In complying with DISC 8.3.2R, the firm must ensure that, once a complaint is received: 

1. (1) the complainant receives a prompt written acknowledgment including a brief explanation of the typical stages and timelines applicable to the firm's complaints handling procedures;
2. (2) the complaint is investigated and assessed competently, impartially, without unreasonable delay and taking account of all relevant factors, including when the firm is determining:
   1. (a) whether the complaint should be upheld or rejected; and
   2. (b) what, if any, remedial action or offer of compensation may be appropriate in the circumstances;
3. (3) the complainant receives a written response providing a clear explanation of its assessment of the complaint and setting out any offer of remedial action or compensation as appropriate; and
4. (4) the firm complies promptly with the terms of any offer made to the complainant if and when it is accepted.