Table 4.3.17 Effects of charges and expenses WARNING—if you cash in early you could get back less than you have paid in This table illustrates what you would get back from your investment if it grew at x% (insert rate of return) a year. These figures are not guaranteed and are only intended to demonstrate the effect of charges and expenses on your investment based on different assumptions on the growth of your investments. At end of Year Total paid in to date Effect of charges and expenses to date What you might get back QR QR QR 1 2 3 4 5 10 15 (2) An authorised firm may change table 4.3.17 so far as necessary to reflect the nature and effect of the charges and expenses inherent in the particular product. (3) In completing the table, the authorised firm must— (a) include figures for the first 5 years of the life policy; and (b) if the policy is a whole-life policy or the illustration covers more than 25 years—include figures for the 10th and every subsequent 10th year of the policy’s term; and (c) if the policy is not a whole-life policy and the illustration covers 25 years or less—include figures for the 10th and every subsequent 5th year of the policy’s term; and
Part 4.5 Other investment related activities Division 4.5.A Investment research and investment recommendations 4.5.1 Investment research—conflicts of interest and impartiality (1) This rule applies if— (a) an authorised firm publishes or disseminates investment research; and (b) either— (i) the firm holds the research out (in whatever terms) as being an impartial assessment of the value or prospects of the subject matter of the research; or (ii) it is reasonable for those to whom the firm has published or distributed the research to rely on it as an impartial assessment of the value or the prospects of the subject matter of the research. (2) The authorised firm must do all of the following: (a) establish and implement a policy, appropriate to the firm, for managing effectively the conflicts of interest and material interests that might affect the impartiality of the investment research; (b) make a record of the policy and keep it for at least 6 years after it ceases to have effect; (c) take reasonable steps to ensure that it and its employees comply with the policy; (d) make a written copy of the policy available to any person on request; (e) take reasonable steps to ensure that the policy remains appropriate and effective.
Part 6.2 Cancelling insurance customers Division 6.2.A Cancelling life policies 6.2.1 New life policies—right to cancel A retail customer has a right to cancel, in accordance with this division, a new life policy effected by an authorised firm that is an insurer. Guidance for r 6.2.1 An authorised firm may voluntarily provide additional cancellation rights, or rights exercisable during a longer period than allowed under this division, but, if it does so, these should be on terms similar to those in this division. 6.2.2 Variations of life policies—right to cancel (1) A retail customer has a right to cancel, in accordance with this division, an existing life policy effected by an authorised firm that is an insurer if the policy is varied and the variation has the effect of— (a) increasing regular premiums or payments, or a single premium or payment, by more than 25% on the original premium or payment (or the previous highest agreed premium or payment); or (b) introducing fresh policy terms; or (c) imposing on the customer additional or increased obligations under the policy; or (d) reducing, or otherwise materially altering, the customer’s benefits under the policy. (2) This rule does not apply to the variation of a life policy if— (a) the variation is the result of a pre-selected option; or (b) the variation arises out of the settlement of a claim for damages or compensation connected with a previous contract. 6.2.3 Life policies—when cancellation right can be exercised (1) A retail customer may exercise a cancellation right under this division in relation to a life policy effected by an authorised firm with the customer only during the cancellation period for the investment.
(2) The retail customer may exercise the cancellation right by giving notice of the exercise of the right to the authorised firm in a durable medium. (3) Without limiting subrule (2), if the retail customer exercises the right in accordance with information given to the customer by the authorised firm, the customer is taken to have complied with the subrule. (4) The notice need not use any particular form of words and it is sufficient if the intention to exercise the right is reasonably clear from the notice or the notice and the surrounding circumstances. (5) The notice need not give reasons for the exercise of the right. (6) If the retail customer exercises the cancellation right by sending notice to the authorised firm at the address given to the customer by the firm for the exercise of the right and the notice is in a durable form accessible to the firm, the notice is taken to have been given to the firm when it is sent to the firm at that address. 6.2.5 Life policies—consequences of cancellation (1) This rule applies if a retail customer exercises a right under this division to cancel a life policy effected by an authorised firm with the customer. (2) The life policy is terminated. (3) For a new life policy, the authorised firm must pay the retail customer an amount equal to the total of the amounts paid by the customer in relation to the life policy. (4) The amount must be paid to the retail customer without delay and no later than 30 days after the day the cancellation right is exercised. (5) For a new life policy, the retail customer must, if required by the authorised firm, pay the firm an amount of no more than the total of— (a) amounts received, and the value of property or services received, by the customer in relation to the life policy; and (b) losses incurred by the firm because of market movements in relation to relevant contracts if the losses are incurred on or before the day the cancellation right is exercised. (6) Subrule (5) only applies if the authorised firm can demonstrate that the retail customer was under rule 4.3.11 (Product disclosure
Required agreement before opting-up client r 2.3.2E ins Rules 2015-4 Client classification―customers’ agents r 2.3.3 am RM2008/01; RM2008/02; Rules 2009-2; Rules 20103; Rules 20146 Client classification—recordkeeping r 2.3.5 am Rules 2015-4 Excluding or restricting liability r.2.4.3 sub Rules 2012-5 Conflicts and material interests―identifying and managing r 2.5.1 am RM2008/01 Conflicts and material interests―decline to act or disclose and notify r 2.5.2 am Rules 2010-3; Rules 2014-6 Soft dollar agreements etc―inducement exemption r 2.5.7 am Rules 2010-3 Soft dollar agreements etc―prior disclosure r 2.5.8 am Rules 2010-3; Rules 2012-5 Soft dollar agreements etc―prior disclosure r 2.5.9 am Rules 2010-3 Customer complaints—internal procedures r 2.6.1 am Rules 2015-4 Customer complaints—service standards for retail customers r 2.6.3 am Rules 2015-4 Customer complaints—referring complaints to other firms r.2.6.4 am Rules 2012-5 Cooperation with staff of the customer dispute resolution scheme r 2.6.6 am RM2008/01 om Rules 2015-4 Restitution orders for contravention of relevant requirements r 2.7.1 am Rules 2014-6 Application—ch 3 r 3.1.1 am Rules 2014-6 Financial promotions—making and approving r 3.2.2 am Rules 2014-6 Retail financial promotions―past performance r 3.3.3 am Rules 2009-2 Cold calls—general rule r 3.3.8 am Rules 2014-6 Application—ch 4 r 4.1.1 am Rules 2010-7; Rules 2012-5; Rules 2014-6