AI Summary of Regulation 37 Obligations of investment firms when appointing tied agents
An investment firm may appoint tied agents to enhance its service offerings, including promoting services, soliciting business, and providing client advice. Importantly, the firm retains full responsibility for the tied agent's actions and must ensure proper disclosure of the tied agent's role and the firm they represent during client interactions.
Regulatory oversight is crucial, with the Bank maintaining a public register of qualified tied agents. To be included, agents must demonstrate good repute and necessary competence. Additionally, firms must monitor tied agents to ensure compliance with relevant regulations and manage any potential conflicts arising from non-regulated activities.
Regulation 37 Obligations of investment firms when appointing tied agents
(1) An investment firm may appoint persons as tied agents for the purposes of -
(a) promoting the services of the investment firm,
(b) soliciting business or receiving orders from clients or potential clients and transmitting them,
(c) placing financial instruments, or
(d) providing advice to clients in respect of -
(i) financial instruments, and
(ii) services offered by the investment firm.
(2) An investment firm that appoints a tied agent -
(a) remains fully and unconditionally responsible for any act or omission on the part of the tied agent when acting on behalf of the investment firm, and
(b) shall ensure that the tied agent discloses -
(i) the capacity in which the tied agent is acting, and