GEN 2.11.1

Past version: effective from 01/10/2007 - 02/01/2010
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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;
(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; and
(c) does not contain any advice on the merits of that particular Person entering into a transaction to buy, sell, hold, subscribe for or underwrite a particular financial product 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]
[Amended] DFSA RM49/2007 (Made 1st October 2007). [VER16/10-07]