Sfc Client Agreement Faq

By 12 abril, 2021Sin categoría

On September 23, 2016, the CFS issued FAQs to provide guidelines on this requirement, including three FAQs on its application to Discretionary Investment Management Agreements (AMAs). advice on the application of the requirements for new customer agreements in the broader sense, the principles of the long-standing quality requirement in Code 5.2, and the application of the revised professional investor system to certain financial products/markets and industries; The FAQs state that, while the compliance clause must be included verbatim in client agreements without amending the original text, the CFS does not object to minor and inconsistent editorial changes that change them. B references from «they» to «customer» or «agree» to terms and conditions, etc., in order to make them compatible with the corresponding descriptors in the company`s underlying documents. FAQs provide that, where these types of funds are clients, they must be covered by paragraphs (a) to (i) the definition of the professional investor in Section 1 of Schedule 1 of Schedule 1 to the SFO, so that an intermediary is able to use its discretion and not include the adequacy clause in the client agreement with these clients. In the FAQs, the CFS recognized that how existing client agreements could be re-exported to meet new customer agreements depended on the circumstances and could be done in different ways (e.g. B, by negative consent or by the reafing of the agreement). Intermediaries are encouraged by the CFS to seek legal advice if in doubt. The FAQs specify that an intermediary who conducts corporate finance activities (for example.B. Advice on new equity offerings or offers to buy, merger and acquisition advisory, corporate restructuring, financing, acquisition and sponsorship activities that fall within the Board`s definition of corporate financing in Part 2 of Schedule 5 of the Securities and Futures Regulation (SFO) should normally rely on paragraph 6.4 of the Code to justify the use of its discretion and without including the adequacy clause in the agreement. In the FAQs, the CFS also confirmed that it expects intermediaries to quickly make revised customer agreements available so that existing customers can conclude them as soon as possible (by amending or replacing their existing agreements). All licensed intermediaries are required to «know their customers» by taking all appropriate measures to establish a customer`s true identity and verify their financial situation when opening the account.