| Services
An Authorised Advisor is an investment business firm whose investment business services comprise:
| i) |
providing broad based investment advice on the most suitable product to clients whether or not an appointment in writing is held from a product producer and/or |
| ii) |
receiving orders in investment instruments and transmitting those orders to product producers from whom it holds an appointment in writing and/or |
| iii) |
transmitting proposals for insurance to Lloyds brokers or other non-resident intermediaries with whom it has entered an agreement to transmit proposals of insurance. |
| iv) |
acting as a product producer. |
Minimum Requirements
Authorised Advisors are required to comply with the requirements of the Handbook for Authorised Advisors. In particular they must:
| a) |
maintain a minimum level of shareholders funds (or, in the case of sole-traders and partnerships, a capital account for sole traders and partnerships) of €10,000; |
| b) |
maintain a minimum level of shareholders funds (or in the case of sole traders and partnerships a capital account) of €50,000 when acting as a product producer; |
| c) |
give broad based advice on insurance policies and other investment instruments; |
| d) |
submit annual audited accounts to the Bank within six months of the firm’s financial year-end (unincorporated entities such as sole traders and partnerships must have their accounts audited); |
| e) |
submit half-yearly management accounts (unaudited) to the Bank |
| f) |
may accept cash from a client only in circumstances where section 25(g)(i) applies or where an express agency agreement exists whereby the intermediary acts as agent of a product producer in transferring premium rebates to a client. |
The Bank reserves the right to impose further requirements on a case-by-case basis, depending on the investment business services provided by the Authorised Advisor.
Authorisation
An Authorised Advisor requires authorisation under Section 10 of the 1995 Act. It must demonstrate to the Bank that they have sufficient skills competence and knowledge to provide stand-alone advice in relation to a potentially wide range of domestic and international investment products and services. Authorised Advisers must, taking all relevant factors into account, recommend for each client the most suitable product available, regardless of whether or not the firm holds an appointment in writing from the relevant product producer/non product producer. Before the Financial regulator can authorise a firm, it must satisfy the Central bank that it meets the conditions set out in section 10(5) of the 1995 Act. |
