DPB – what does it mean for me?

What is DPB? DPB = Designated Professional Body ICAEW may grant a DPB licence to firms who carry out certain investment activities

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/financialservices

Boundary issues DPB handbook Unregulated activities – Schedule 4 of Part 3 Exempt regulated activities (or NMRA) – Schedule 2 of Part 3 Mainstream regulated activities – Schedule 1 of Part 3

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

Examples of exempt regulated activities Introducing to permitted third parties Assisting in the administration and performance of a contract of insurance Advising Dealing in investments as agent for a client Safeguarding and administration

Can my firm apply for a DPB licence? Eligibility Incidental and complementary services PII Insurance mediation - €1,120,200 per claim, €1,680,300 in total

Introductions to third parties The introduction How is the introduction made? What is the introduction for? Who is the introduction to?

Introductions to third parties Introductory commission or fees Unregulated activity – Code of Ethics section 240.7 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

Fee protection insurance The firm is insured for its clients The firm offers insurance to clients The firm self-insures

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

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

Status and other disclosures Schedule 1 to Part 4 of DPB Handbook Name and address of the firm Not authorised by the Financial Services 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

Investment business compliance review DPB annual compliance review icaew.com/helpsheets

Where can I get help? icaew.com/financialservices DPB helpline +44 (0)1908 546 370 Financial Services Faculty (icaew.com/fsf) Helpsheets (icaew.com/helpsheets)