NEWCOB: Certain non-advised products must be 'appropriate'

As part of its response to MiFID and the review of its conduct of businesss rules the regulator says the test of whether a client has appropriate knowledge and experience of a financial product to understand the risks involved, where the product is non-advised, will be intelligently copied out from MiFID. It says despite its desire to minimise the amount of formal guidance in the new conduct of business rules (NEWCOB) it recognises the test is new and largely unfamiliar and clarification of key elements will therefore be required. Financial promotions of warrants and derivatives to reta...