Principles and Practices for the Sale of Products and Services
in the Financial Sector Survey
In the Principles and Practices for the Sale of Products and Services in
the Financial Sector released by The Joint Forum of Financial Market
Regulators:
"The intermediary must include the names of organizations or persons
that are, to his or her knowledge, directly providing remuneration to the
intermediary; the relationship between the intermediary and the firm
whose product is being considered; and any relationship(s) among the firms
directly involved in a transaction. The intermediary should also disclose
any other direct or indirect relationships that are relevant to the
transaction. In cases where this information has not been disclosed
because the intermediary is unaware of it, it is expected that he or she
will have first made a reasonable effort at due diligence. The
intermediary must also disclose all fees payable by the client, the method
of the intermediary's remuneration (disclosure of specific amount is
not required, but disclosure of the type of compensation is, i.e., fixed and
percentage commission, salary, or other) and must disclose the
existence of any other benefits from sales incentive programs related to the
transaction (note: as with compensation, this disclosure only applies
to the type of compensation the intermediary receives, not the specific
amount)."
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