BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 DPB – what does it mean for me?hat does it mean for me?

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 DPB – what does it mean for me?

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 What is DPB? DPB = Designated Professional Body ICAEW may grant a DPB licence to firms who carry out certain investment activities

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 What is investment business? not easy to define what is the product and what is the activity? DPB Handbook – Schedule 9 of Part 3 icaew.com/dpb

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Boundary issues DPB handbook Unregulated activities – Schedule 4 of Part 3 Exempt regulated activities – Schedule 2 of Part 3 Mainstream regulated activities – Schedule 1 of Part 3

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Examples of unregulated activities Tax advisory work involving generic investment advice Advising on availability of grants and helping with applications Forecasts to support a loan application Valuations Providing a reference for mortgage application Obtaining an unsecured overdraft

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Exempt regulated activity areas Introductions to third parties Fee protection insurance Claims handling Auto-enrolment Corporate finance Financial promotions

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Can my firm apply for a DPB licence? Eligibility – each principal needs to be a DPB affiliate if not a member of a DPB Incidental and complementary services PII Insurance mediation - €1,120,200 per claim, €1,680,300 in total

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Introductions to third parties The introduction How is the introduction made? What is the introduction for? Who is the introduction to? Records

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Introductions to third parties – post RDR Independent v restricted

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Accounting for commission Introductory commission or fees – Unregulated activity – Code of Ethics section – Regulated activity – DPB Handbook rule 4.15 – Account to the client – Obtain consent to retain – Treat as clients’ money until the client has given written consent

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Fee protection insurance The firm is insured for its clients The firm offers insurance to clients The firm self-insures

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Fee protection insurance Is the advice on the basis of a fair analysis – Para 4.16 Suitable for client’s demands and needs – Para 4.17 Provide a written demands and needs statement – Para 4.18

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Claims handling Notifying a claim to insurers Assisting in the completion of the claim form Negotiating with the insurer on behalf of the client

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Auto-enrolment

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 You cannot advise scheme members on the selection of investments within a policy as you do not have FCA authorisation If you make a client referral, same considerations as for general referrals Handling premiums for clients Potential problem areas in auto-enrolment

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Corporate finance Sale of body corporate exclusion More than 50% shareholding Acquisition or disposal of day to day control Schedule 5 of Part 3 of the DPB Handbook

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Corporate finance Exempt regulated (DPB licence required) Work on minority interests Advice to individual sellers on a takeover bid (if sale of body corporate doesn’t apply) Rights issues

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Financial promotions It’s complicated!! But there are lots of exemptions And you can get an FCA authorised firm to approve a promotion

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Status and other disclosures Schedule 1 to Part 4 of DPB Handbook Name and address of the firm Not authorised by the Financial Conduct Authority Nature of ERA and limited in scope Firm is licensed by ICAEW Insurance mediation activities Schedule 1 to Part 4 para 4.03b Complaints procedure Compensation arrangements

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Investment business compliance review DPB annual compliance review File reviews/register of referrals icaew.com/helpsheets

BUSINESS WITH CONFIDENCEicaew.com © ICAEW 2014 Where can I get help? icaew.com/financial services or icaew.com/dpb DPB helpline +44 (0) Financial Services Faculty (icaew.com/fsf) Helpsheets (icaew.com/helpsheets)

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