deals are performed based on that advice), they would not be needed for advice only where no deals
occur.
Under the dissemination offence, Fred is accused of making misleading statements in an attempt to
induce an individual to purchase an investment. What would provide defence?
- It was behavior that a regular user would find acceptable
- Grey market rules
- Stock lending rules
- Underwriting rules -
✔✔
It was behavior that a regular user would find acceptable.
- The "dissemination offense" rules refer to the market abuse legislation. This is one of six offences
under this legislation. This particular offense contains the requirement that a regular user would find the
behavior a failure to observe standards of behavior that are reasonably expected.
Which one of the following is not needed to obtain info about in order to asses suitability?
- The investment objectives of the client
- The client's investment experience
- The identity of the client's existing investments
- the client's financial ability to bear risk -
✔✔
The identity of the client's existing investments
- The firm is NOT required to obtain info about client's existing investments
A fund manager sends out a mailshot blindly to several clients The email contains info re: manager's
products and his website. Which of the following is covered under the Distance Marketing Directive?
- Email but not the website
- The website but not the email
- Neither the email nor the website
- The email and the webiste -
✔✔
The email and the website.
- Since the email promotes the website, both would be covered under the directive.
