The Central Bank adjusted the basic standard for an investment advisor to carry out transactions in the financial market. Now an individual investment recommendation (IIR) will be classified as such even without the corresponding disclaimer. Frank Media drew attention to the changes in the updated version.
Now any recommendation will be considered an IIR if it contains data on whether the instrument meets the client’s objectives, risk appetite and expected return. This also applies to those cases where the recommendation contains an indication that it is IIR, regardless of the presence of a disclaimer.
The regulator explains the changes in the basic standard by the fact that the previous edition allowed the provision of IIR for which the advisor was not responsible.
For example, the editorial previously stated that the IIR does not include a recommendation stating that it is “not an individual investment recommendation.”
As the Central Bank explains, adjustments have been made so that the investor knows when he receives a recommendation and when he does not. The advisor is now asked to clarify the type of information provided. It can be analytical, advertising and marketing.
Author:
Natalia Gormaleva
Source: RB
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