Ch.6 · Distributor Commission Structure · hard
What must a distributor do when an investor insists on investing in a scheme that is unsuitable for their risk profile?
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EXPLANATION
When an investor insists on a transaction despite suitability concerns, the distributor should clearly explain the risks and unsuitability. If the investor still insists, the transaction can be processed as an 'execution-only' transaction where the investor signs a declaration that they are acting against the distributor's advice, leaving the EUIN blank.
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