Knowledge Base

Which article of the Code monétaire et financier defines advice on diversified assets?

L.541-1 I, 1°

L.541-1 I, 3°

L.541-1 I, 4°

L.551-1

What specific obligation must a CIF comply with when advising on miscellaneous assets?

Verify the AMF registration of the product and consult the AMF lists

Obtain an additional banking licence

Only offer state-guaranteed products

Limit advice to professional clients only

What is the first step in the investment advisory process according to a CIF's daily practice?

Formulating an asset allocation recommendation

Establishing the investor profile through a KYC questionnaire

Recommending switches between investment vehicles

Advising on miscellaneous assets

What financial instruments are covered by investment advice under Article L.211-1 of the Code monétaire et financier?

Equities, bonds, SICAV/FCP units, alternative funds, structured products

Bank accounts, savings accounts, standard life insurance contracts

Residential real estate, agricultural land, works of art

Cryptocurrencies, NFTs, precious metals

Categorize items by dragging them to the appropriate zones

Items to categorize:

Recommendation to purchase equities

Referral to a portfolio management company

Advice on acquiring collectible wines

Categories:

Investment advice (A)

Financial services advice (B)

Advice on diversified assets (C)

Promotional communications on miscellaneous assets must be clear and not misleading under Article L.551-1 III of the Code monétaire et financier.

True

False

Financial services advice (L.541-1 I, 3°)

Click to see answer

A CIF can directly manage an investment portfolio for a client.

True

False