The following Financial Services guidance note provides comprehensive and up to date legal information covering:
BREXIT: As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this Practice Note. For further guidance, see Practice Notes: The impact of Brexit on the MiFID II regime and Impact of Brexit: Insurance distribution-quick guide.
This Practice Note looks at the suitability rules of the Financial Conduct Authority (FCA). For specific guidance on establishing the risk a customer is willing and able to take and making a suitable investment selection, see Practice Note: Establishing risk and suitable investment selections.
The conduct of business rules in relation to investment business can be found in the FCA Handbook in the Conduct of Business sourcebook (COBS). In 2006, the FCA's predecessor, the Financial Services Authority (FSA) reformed COBS to implement the Markets in Financial Instruments Directive (Directive 2004/39/EC) (MiFID). MiFID has been replaced by the recast Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II Directive) and the Markets in Financial Instruments Regulation (Regulation (EU) 600/2014) (MiFIR) (together with the MiFID II framework). Both the MiFID II Directive and MiFIR entered into force on 2 July 2014. As amended, the majority of
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