| Country Manuals Products – We would like to inform you that BRP has updated its COUNTRY MANUAL PRODUCTS for the following jurisdiction: UNITED KINGDOM (OUT OF A THIRD COUNTRY) |
| SOURCE OF CHANGES | ANSWERS |
| Law/Regulation | YES |
| New Position of the Authorities | YES |
| Evolution of Expert’s interpretation | YES |
Definitions & Concepts, Regulatory Overview and Behaviour Template
Regulatory changes
On 25 March 2022, the Financial Conduct Authority (FCA) published a new Policy Statement that provided interpretative guidance stating that a PRIIPs should not be considered to be “made available” to Retail Investors when:
> The marketing materials (including the prospectus) feature prominent and clear disclosures to the effect that the financial instrument is being offered only to professional investors or eligible counterparties and is not intended for retail investors;
> The issuer or the distributor has taken reasonable steps to ensure the offer and any associated promotional communications are directed only to professional investors or eligible counterparties; and
> Denomination or minimum investment is at least GBP 100’000 (or equivalent in another currency).
Consequently, a PRIIPs KID does not have to be provided to Retail Investors if the issuer or the distributor did not actively market such products and the minimum denomination/investment is complied with.
Material changes
In line with the regulatory changes outlined above, the Country Manual has been reviewed to ensure that the content of all the documents remains accurate and up to date. The changes/modifications are as follows:
> In alignment with the Country Manual Private Banking, the definition of “Professional Investors” has been aligned with the FPO-exemption. Consequently, promotion of registered financial products (“communication of a financial promotion”) towards the Investment Professionals and High Net Worth Companies is permitted. Therefore, with respect to the provision of investment services (as addressed in this CM P), only these persons are considered “Professional Investors” (although the FSMA definition of “professional investors” remains relevant for the “private placement exemption”);
> Furthermore, provision of investment advice as well as any marketing activities to Retail Clients is permitted based on the FPO-exemption for registered investment products or, for unregistered products, based on the
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