All You Need to Know About Investment Services

A multi-faceted service is based on engagement - you get to work with a real expert (the founder) every time. They do not offer a quick fix (unless you want one) - they aim to deliver a long-term strategic solution, which is all about differentiating your offering (while avoiding hackneyed clichés), creating truly engaging content, and getting assets flowing in your direction.

Investment advice is deemed to be the act of providing personal recommendations to a client or potential client on one or more transactions relating to financial instruments. When providing investment advice, firms are required to recommend to the client (or potential client) the financial instruments that are suitable for him/her and are following the client`s risk tolerance and ability to bear losses. The term ‘advice’ means a ‘recommendation of what you should do’. For example, a recommendation to buy or sell a particular investment. The recommendation is personal to the client and based on his/her specific circumstances and financial objectives. 

Investment advice is different from the guidance that includes information about different types of investments or general principles without recommending a specific course of action or giving a personal recommendation.

“Investment services” is a general term used to describe a whole range of activities related to investments in financial instruments. Typically, the most common forms of investment services are the following:

The provision of investment advice whereby investors are provided with personal recommendations on the investments products that would be suitable for them (also known as an advisory service)

The purchase or sale of financial products on an execution only basis (therefore without receiving investment advice); or the provision of portfolio management services (collective or discretionary).

When you receive investment advice, you are placing a higher degree of reliance on the investment firm than you would do in other circumstances such as in the case of simple non-advisory transactions. You, therefore, need to have some comfort that the firm understands your individual needs and circumstances so that it recommends the right products for you. The revised Markets in Enlivening content since 1990 requires that the entity carries out a Suitability test, where the firm asks you questions on your financial situation; investment objective, and knowledge and experience to reach an understanding of the types of investments that will be suitable for you.

The firm shall, when providing investment advice before the transaction is made, provide the client with a suitability report in a durable medium specifying the advice given and how the financial instrument recommended meets the financial and investment objective of the client as well as whether the client has enough knowledge and experience to understand the characteristics of and risks associated with that financial instrument.

Report this Page