Authorised Firm must have systems and controls including policies and procedures to ensure that neither it, nor an Employee or Associate of it, offers, gives, solicits or accepts inducements such as commissions or other direct or indirect benefits where such inducements are reasonably likely to conflict with any duty that it owes to its Clients.
(2) Subject to (3), an
Authorised Firm must, before recommending a financial product as defined in GEN Rule 2.11.1(4) to, or Executing a Transaction for, a Retail Client, disclose to that Client any commission or other direct or indirect benefit which it, or any Associate or Employee of it, has received or may or will receive, in connection with or as a result of the firm making the recommendation or executing the Transaction.
Authorised Firm need not disclose to a Retail Client under (2) any details about inducements where it:
(a) believes on reasonable grounds that the
Retail Client is already aware of the relevant inducements;
(b) is undertaking an Execution-Only
Transaction for that Retail Client; or
(c) is executing a
Transaction pursuant to the terms of a Discretionary Portfolio Management Agreement for that Retail Client.
Authorised Firm may provide the information required under (2) in summary form, provided it informs the Client that more detailed information will be provided to the Client upon request and complies with such a request.