Regulation 3

the provision of any financial advisory service in connection with any type of investment product, other than a relevant life policy; or

the sale of any type of investment product, other than a relevant life policy, following the provision of any financial advisory service,except in accordance with paragraph (2), (3), (4) or (5).

the provision of a financial advisory service in connection with a relevant life policy; or

the sale of a relevant life policy following the provision of a financial advisory service,except in accordance with paragraph (2), (3), (4) or (6).

the relevant person is a financial adviser who is exempt under section 20(1)(f), (g) or (h) of the Act from holding a financial adviser’s licence;

the relevant person is a representative of a financial adviser mentioned in sub‑paragraph (a); or

the relevant person is a supervisor of a financial adviser mentioned in sub‑paragraph (a).

an accredited investor;

an expert investor; or

an institutional investor.

the number of contracts entered into for the sale of any type of investment product; or

the value of contracts entered into for the sale of any type of investment product.

is made pursuant to an agreement under which the relevant person is entitled, for a continuous period of at least 12 months starting from the date on which the agreement becomes effective, to payment or remuneration for the sale of investment products within any one category listed in the Schedule;

is made pursuant to an agreement for the sale of investment products within 2 or more categories listed in the Schedule; or

is of a pure protection policy.

any of the following is satisfied:

the sale is made pursuant to an agreement under which the relevant person is entitled, for a continuous period of at least 12 months starting from the date the agreement becomes effective, to the payment or remuneration for the sale of the relevant life policy, and the policy comes within any of the categories in items 11 to 17 of the Schedule;

the sale is made pursuant to an agreement for the sale of investment products within 2 or more categories listed in the Schedule, and the relevant life policy comes within any of the categories in items 11 to 17 of the Schedule;

the relevant life policy is a pure protection policy; and

where the payment or remuneration consists of variable income, all the conditions in paragraph (7) or (8) (whichever is applicable) are satisfied.

the payment or remuneration is monetary in nature;

the relevant person’s entitlement to be paid the payment or remuneration is dependent only on either or both of the following factors:

the issue of the relevant life policy by the licensed insurer concerned and the making of the first payment of premiums to the licensed insurer for that policy;

the making of the first payment of additional premiums in respect of the relevant life policy;

the payment or remuneration is payable to the relevant person —

over a period of at least 6 years starting from the date the relevant life policy is issued; or

over a period that covers at least the premium payment period of the relevant life policy, if the premium payment period is less than 6 years starting from the date the relevant life policy is issued;

the total payment or remuneration payable to the relevant person in respect of the sale of the relevant life policy, during the period of 12 months starting from the later of the following, does not exceed 55% of the total payment or remuneration payable to the relevant person in respect of the sale:

the date the relevant life policy is issued;

the date the premium payment period of the relevant life policy commences;

where additional premiums are payable under the relevant life policy, the payment or remuneration in respect of those additional premiums is payable to the relevant person —

over a period of at least 6 years starting from the date the first payment of the additional premiums is made to the licensed insurer; or

over a period that covers at least the period that those additional premiums are payable, if the second-mentioned period is less than 6 years starting from the date the first payment of the additional premiums is made to the licensed insurer;

where additional premiums are payable under the relevant life policy, the total payment or remuneration payable to the relevant person in respect of those additional premiums, during the period of 12 months starting from the date the first payment of additional premiums is made to the licensed insurer, does not exceed 55% of the total payment or remuneration payable to the relevant person in respect of those additional premiums;

the payment or remuneration is payable at least once every year in the period mentioned in sub-paragraph (c) or (e) (whichever is applicable); and

where the relevant life policy is an investment-linked policy and the net asset value of its underlying fund or funds is used to compute the total payment or remuneration payable, an investment rate of return of 0% over the entire policy term is used.

the payment or remuneration is monetary in nature;

the payment or remuneration is in respect of a portfolio of relevant life policies and is payable to the relevant person over a period of at least 5 years starting from the date the first payment of the payment or remuneration (or any part of it) is made to the relevant person;

the total payment or remuneration in respect of the portfolio of relevant life policies that is payable to the relevant person, during the period of 12 months starting from the date the first payment of the payment or remuneration (or any part of it) is made to the relevant person, does not exceed 55% of the total amount of the payment or remuneration that is payable to the relevant person in respect of the portfolio of relevant life policies;

the payment or remuneration is payable at least once every year in the period mentioned in sub-paragraph (b); and

where the relevant life policy is an investment-linked policy and the net asset value of its underlying fund or funds is used to compute the total payment or remuneration payable, an investment rate of return of 0% over the entire policy term is used.