Related provisions for SUP 11.7.1
1Typical recommendations and whether they will be regulated as advising on investments under article 53 of the Regulated Activities Order. This table belongs to PERG 8.29.1 G to PERG 8.29.6 G.2
Recommendation |
Regulated under article 53 or not? |
I recommend that you take out the ABC investment. |
Yes. This is advice which steers the client in the direction of a particular investment which the client could buy. |
I recommend that you do not take out the ABC investment. |
Yes. This is advice which steers the client away from a particular investment which the client could have bought. |
I recommend that you take out either the ABC investment or the DEF investment. |
Yes. This is advice which steers the client in the direction of more than one particular investment which the client could buy. |
I recommend that you sell your ABC investment. |
Yes. This is advice which steers the client in the direction of a particular investment which the client could sell. |
I recommend that you do not sell your ABC investment. |
Yes. This is advice which steers the client away from a particular investment which the client could have sold. |
I recommend that you transfer ownership of your ABC investment to your spouse. |
Advising the client to gift an investment to another person will not be advice because it does not involve advice on buying, selling, subscribing for or underwriting an investment. |
I recommend that you increase the regular payments you are making to your GHI fund*. |
Yes. This is advice which steers the client in the direction of acquiring further units in a particular fund. |
I recommend that you decrease the regular payments you are making to your GHI fund*. |
Yes. This is advice which steers the client in the direction of acquiring further units in a particular fund but advises against the client buying as many as he intended. |
I recommend that you keep making the same regular payments to your GHI fund*. |
Yes. This is advice which steers the client in the direction of acquiring further units in a particular fund. |
I recommend that you stop making the regular payments you are making to the GHI fund*. |
Yes. This is advice which steers the client away from buying units in a particular fund which the client could have bought. |
I recommend that you pay a lump sum into your GHI fund*. |
Yes. This is advice which steers the client in the direction of acquiring further units in a particular fund. |
I recommend that you do not pay a lump sum into your GHI fund*. |
Yes. This is advice which steers the client away from buying units in a particular fund which the client could have bought. |
I recommend that you move part of your investment in the JKL investment from fund X into fund Y*. |
Yes. This is advice which steers the client in the direction of selling units in a particular fund and buying units in another specific fund. Where the two funds are sub-funds of the same main fund it is still advice. The terms ‘bought’ and ‘sold’ are given a wide meaning and include any acquisition or disposal for valuable consideration. |
I recommend that you move all of your investment in JKL investment from fund X into fund Y*. |
Yes, for the same reason. |
I recommend that you move your MNO investment from platform X and re-register it on platform Y. |
This is unlikely to be advice because normally it will not involve buying and selling the investment held on the platform. |
A client decides of his own accord to increase, decrease or temporarily suspend his regular payments or the payments are increased automatically into an investment without advice being given. |
No. No advice is being given. |
The firm is providing discretionary management services under a mandate and makes changes to a client'sinvestment without providing advice. |
No. No advice is being given. |
Dividends are re-invested into an investment without advice being given. |
No. No advice is being given. |
* The same answer would apply where the fund is a life policy as rights under a contract of insurance are regulated investments under the Act. The position under a personal pension scheme is similar, as explained in more detail in PERG 12.3. |