GEN 2.11.1

Past version: effective from 18/06/2006 - 30/09/2007
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(1) In GEN Rule 2.2.2 Advising on financial products or credit means giving advice which:
(a) is given to a Person in his capacity as an investor or potential investor, or in his capacity as agent for an investor or a potential investor on the merits of his buying, selling, holding, subscribing for or underwriting a particular financial product (whether as principal or agent); or
b) is given to a Person in his capacity as a borrower or potential borrower or as agent for a borrower or potential borrower on the merits of his entering into a particular Credit Facility; or
(c) constitutes generic advice.
(2) Advice in (1)(a) and (b) includes a statement, opinion or report:
(a) where the intention is to influence a Person, in making a decision, to select a particular financial product or an interest in a particular financial product or to enter into a particular Credit Facility; or
(b) which could reasonably be regarded as being intended to have such an influence.
(3) In (1)(c), 'generic advice' means any communication, subject to (4), that:
(a) contains information about a particular financial product or Credit Facility; and
(b) could reasonably be regarded as being intended to influence a Person when making a decision relating to any financial product or Credit Facility to which the communication relates,
although the communication does not contain any advice on the merits of that Particular person entering into a transaction to buy, sell, hold, subscribe for or underwrite those financial products or enter into a particular Credit Facility, whether as principal or agent.
(4) Any communication which contains generic advice where issued by or on behalf of a government or government entity does not constitute generic advice for the purposes of this Rule.
(5) For the purposes of this Rule and GEN Rule 2.11.2 a financial product is an Investment or rights under a contract of Long-Term Insurance, not being a contract of reinsurance.

Derived from DFSA RM01/2004 (Made 16th September 2004). [VER1/09-04]
[Amended][VER10/06-06]