Regulation 40D

any bank that holds a licence granted under section 7 or 79 of the Banking Act 1970;

any merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act 1970;

any finance company licensed under the Finance Companies Act 1967;

any payment service provider licensed under the Payment Services Act 2019;

any insurer licensed or regulated under the Insurance Act 1966;

any insurance intermediary registered or regulated under the Insurance Act 1966;

any holder of a capital markets services licence under the Securities and Futures Act 2001;

any licensed trust company under the Trust Companies Act 2005;

any person who carries on a business of providing will writing services, estate or tax planning services, or any combination of those services.

the licensed financial adviser must, when carrying out referral activities (whether through any of its representatives or otherwise), disclose in writing to every client —

that the licensed financial adviser is carrying out referral activities for one or more relevant persons;

that, when carrying out referral activities, the licensed financial adviser and its representatives must not give advice or provide any recommendation on any product or service in relation to any non‑financial advisory service to the client;

whether the licensed financial adviser or any of its directors or shareholders, is a substantial shareholder of the relevant person, and whether the licensed financial adviser has any other relationship with the relevant person or any person acting for or on behalf of the relevant person (as the case may be);

whether the licensed financial adviser has any other actual or potential conflict of interest that may arise from carrying out referral activities for the client;

whether or not the licensed financial adviser or any of its representatives is or will be remunerated by one or more relevant persons for carrying out referral activities;

where the licensed financial adviser or any of its representatives is or will be remunerated by one or more relevant persons, the amount of remuneration and the basis of remuneration received; and

such other information as the Authority may specify;

the licensed financial adviser must not, when making any referrals (whether through its representatives or otherwise), give advice or provide any recommendation on any product or service in relation to any non‑financial advisory service to the client;

the licensed financial adviser must ensure effective controls and segregation of duties to mitigate actual or potential conflicts of interest that may arise from the licensed financial adviser carrying out referral activities;

the licensed financial adviser must ensure that its carrying out of referral activities does not cause any reputational damage to itself or the financial advisory industry, or both;

where —

a client in relation to whom the licensed financial adviser carries out referral activities enquires about any non‑financial advisory service; and

the licensed financial adviser carries out referral activities for more than one relevant person,the licensed financial adviser (whether through any of its representatives or otherwise) must, with the consent of the client, refer that client to every relevant person for which it carries out the referral activities;

the licensed financial adviser must not receive or deal with client’s money or property in relation to referral activities;

the referral activities which the licensed financial adviser may carry out for a relevant person referred to in paragraph (2)(i) may only be those relating to that relevant person’s business of providing will writing services, estate or tax planning services, or any combination of those services; and

the licensed financial adviser must do all of the following before the licensed financial adviser refers the client to a relevant person referred to in paragraph (2)(i):

the licensed financial adviser must conduct due diligence to ensure that the relevant person providing the will writing services, estate or tax planning services, or any combination of those services, is competent and suitably qualified to do so;

the licensed financial adviser must provide a written document to the client which clearly sets out —

which of the services that the licensed financial adviser provides are financial advisory services and which of the activities carried out by the licensed financial adviser are referral activities; and

the role and responsibilities of the relevant person when providing will writing services, estate or tax planning services, or any combination of those services; and

the licensed financial adviser must obtain from the client a confirmation in writing that the client understands the written document referred to in sub‑paragraph (ii).

where the training and consultancy relate to any investment, the product must be limited to investment products;

the licensed financial adviser must, when providing training or consultancy (whether through any of its representatives or otherwise), disclose in writing to every client whether any advice will be provided in the course of the training or consultancy.

the licensed financial adviser must conduct due diligence to ensure that every one of its representatives, officers or employees who provides those services, or any combination of those services, to the client, is competent and suitably qualified to do so;

the licensed financial adviser must provide a written document to the client which clearly sets out —

which of the services that the licensed financial adviser provides are financial advisory services, and which of those services are will writing services, estate or tax planning services, or any combination of those services; and

the respective roles and responsibilities of the licensed financial adviser when providing financial advisory services, and will writing services, estate or tax planning services, or any combination of those services; and

obtain from the client a confirmation in writing that the client understands the written document referred to in sub‑paragraph (b).