November 2015
Beginner
400 pages
11h 51m
English
This appendix briefly describes the activities of four typical Front Office departments before going on to look at some of the main regulatory requirements that are of relevance to them. Note that where a requirement is shown as being relevant to a particular department, this may not be true in relation to everything that they do, depending on the exact nature of the product and/or service involved. Also note that the use of the terms ‘Client’, ‘Customer’ and ‘Eligible Counterparty’ in this section follows their FCA definitions.
| Topic | |
| Customer sales and trading | 222 |
| Investment management (asset management, portfolio management) | 223 |
| Corporate finance and investment banking | 223 |
| Research | 223 |
| Business and regulatory approvals | 224 |
| Relationship with Compliance department | 225 |
| Client's best interest rule | 225 |
| Provision of information about the firm | 226 |
| Client agreements | 228 |
| Best execution | 229 |
| Prompt execution | 232 |
| Client limit orders | 233 |
| Suitability | 233 |
| Appropriateness (for non-advised services) | 234 |
| Churning and switching | 236 |
| Aggregation and allocation | 237 |
| Order and execution records | 238 |
| Training and competence (‘T&C’) | 238 |
| Approved Persons rules | 240 |
| Inducements | 241 |
| Voice recording | 241 |
| Communicating with clients (fair, clear and not misleading communications) | 242 |
| Financial promotions | 243 |
| Client categorization | 244 |
| KYC | 245 |
| Anti-money laundering (AML) and counter-terrorist financing (‘CTF’) controls | 246 |
| Reporting suspicions ... | |