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Unit Standard No.12164Page 121


As far as a Financial Services Product is concerned, a provider must–

1 (a) provide a reasonable and appropriate general explanation of the nature and material terms of the relevant contract or transaction to a client, and generally make full and frank disclosure of any information that would reasonably be expected to enable the client to make an informed decision;

(b) whenever reasonable and appropriate, provide to the client any material contractual information and any material illustrations, projections or forecasts in the possession of the provider;

(c) in particular, at the earliest reasonable opportunity, provide, where applicable, full and appropriate information of the details of the product and its benefits

This includes information such as

the name, class or type of financial product concerned and the nature and extent of benefits to be provided, including details of the manner in which such benefits are derived or calculated and the manner in which they will accrue or be paid;

If the product is positioned as an investment or as having an investment component, the details of the manner in which the value of the investment is determined, including concise details of any underlying assets or other financial instruments

The nature and extent of monetary obligations assumed by the client (including commission, consideration, fees, charges or brokerages payable to the provider by the client, or payable by the product supplier or any other person other than the client concerned), as well as the manner of payment or discharge thereof.

concise details of any special terms or conditions, exclusions of liability, waiting periods, loadings, penalties, excesses, restrictions or circumstances in which benefits will not be provided;

any guaranteed minimum benefits or other guarantees;

to what extent the product is readily realisable or the funds concerned are accessible;

any restrictions on or penalties for early termination of or withdrawal from the product, or other effects, if any, of such termination or withdrawal;

material tax considerations;

whether cooling off rights are offered and, if so, procedures for the exercise of such rights;

(d) Fully inform a client in regard to the completion or submission of any transaction requirement–

INSMAT final materials31/10/03

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