Article 325-6 into force since
- Version into force since
Before offering advice, financial investment advisers shall submit a letter of engagement to the client. This letter shall be drawn up in duplicate and signed by both parties.
The letter of engagement shall contain, inter alia, the following indications:
Acknowledgement by the client that he has received and read the document mentioned in Article 325-5;
The nature of and arrangements for the service to be provided, the description of which is suited to the client's status as a natural or a legal person and to his principal characteristics and motivations;
The means by which information is to be given to the client, specifying the special arrangements for reporting on the advisory activity and for updating the information mentioned in Points 4° and 5° of Article 325-5 whenever the relationship is expected to be a lasting one;
The terms and conditions of remuneration of the financial investment adviser, specifying the calculation of the fees charged for the advisory service and, where applicable, the existence of any remuneration received from institutions mentioned in Point 5° of Article 325-5 in respect of products acquired pursuant to advice given by the adviser;
Where the adviser provides the service mentioned in Point 1° of I of Article L. 541-1 of the Monetary and Financial Code, the financial investment adviser shall also inform the client:
Whether the investment advice is provided on an independent or non-independent basis. In order to specify to the client the scope of the service, reference shall be made to the document mentioned in Article 325-5;
Whether the investment advice is based on a broad or on a more restricted analysis of different types of financial instruments and, in particular, whether the range is limited to financial instruments issued or provided by entities having close links with the financial investment adviser or any other legal or economic relationships, such as contractual relationships, so close as to pose a risk of impairing the independent basis of the advice provided;
Whether the adviser will provide the client with a periodic assessment of the suitability of the financial instruments recommended to that client.
Information on the proposed financial instruments and investment strategies, which must include appropriate guidelines and warnings about the inherent risks of investing in such instruments or of certain investment strategies, given the target market defined in accordance with Article L. 541-8 of the Monetary and Financial Code;
Information on associated costs and charges, including a description of the different categories of costs and charges associated with the investments that the financial investment adviser is offering to its clients, as well as the manner in which the client may pay these costs and charges, which includes payment by third parties.
A signed copy of the letter of engagement shall be remitted to the client.
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