Conduct of Business, Suitability and Client Assets
Apply communications, categorisation, advice, disclosure, product-governance and client-asset requirements.
How to prepare for the Investment Advice Diploma
Build UK regulation, integrity, investment, risk and tax first; then apply those foundations to the one technical option aligned with your role. The original multiple-choice practice tests knowledge, calculations and advisory judgement without reproducing recalled or secure CISI questions.
Core concepts
Concept 1
Apply COBS requirements to client communications, inducements, categorisation and advice.
Exam cue: Classify the client and service.
Concept 2
Distinguish suitability, appropriateness and execution-only service.
Exam cue: Identify the disclosure or suitability duty.
Concept 3
Protect client money and custody assets under the relevant CASS controls.
Exam cue: Trace ownership and safeguarding of money or assets.
Risk pitfalls and guardrails
Treating a financial promotion as automatically fair.
Guardrail: Do not combine the five displayed units into one exam, infer permission from qualification, use stale annual figures or ignore the selected technical route.
Applying suitability to every non-advised transaction.
Guardrail: Do not combine the five displayed units into one exam, infer permission from qualification, use stale annual figures or ignore the selected technical route.
Mixing firm assets with client assets.
Guardrail: Do not combine the five displayed units into one exam, infer permission from qualification, use stale annual figures or ignore the selected technical route.
Memory anchors
Suitability
The requirement that a personal recommendation fits the client's objectives, financial situation, knowledge, experience and risk profile.
Client categorisation
Classification that helps determine the regulatory protections and disclosures applying to the client.
CASS
The FCA sourcebook governing client money and custody-asset protection.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
Before making a personal recommendation, what must an adviser primarily establish?
Which information is most important when assessing investment capacity for loss?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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