4.2 Terms of Business

The Terms of Business is a document which outlines the basis on which you operate your business. It can also be seen as an effective marketing tool.

The Consumer Protection Code outlines the minimum level of information you must provide to the client in the Terms of Business letter:

▪ Legal name, trading name (if any), address & contact details;
▪ The identity of the group to which the regulated entity belongs, if any;
▪ Confirmation that the regulated entity is authorised and the name of the competent authority that has authorised, licensed or registered it;
▪ A statement that the regulated entity is subject to the [insert names of the Central Bank’s Code(s) of Conduct which the firm must comply with which offers protection to consumers and that the Code(s) can be found on the Central Bank’s website www.centralbank.ie;
▪ A description of the regulated services that the regulated entity provides;
▪ A description of the level of service the firm provides for each product type i.e. whether fair and personal analysis of the market or limited analysis of the market and an explanation of that type of service in a way that seeks to inform the consumer (if providing advice on the basis of limited analysis, whether exclusive or not, include list of product producers you are providing advice on);
▪ If the regulated entity is tied for any of the services outlined in point 5) above, the name of the regulated entity to which it is tied and details of the service for which it is tied;
▪ A general statement of the charges imposed directly by the regulated entity;
▪ A summary of the regulated entity’s policy in relation to conflicts of interest;
▪ An outline of the action and remedies which the regulated entity may take in the event of
default by the consumer;
▪ A summary of the complaints procedure operated by the regulated entity;
▪ Product-level disclosures outlining whether the firm considers relevant sustainability risks;
▪ If the regulated entity is a member of a compensation scheme, the name of the scheme and the nature and level of protection available from the scheme; and
▪ The effective date of the terms of business.
▪ Before providing your first service to a consumer, you must provide the consumer with a copy of the firm’s Terms of Business.
▪ The Terms of Business letter must be issued as a stand-alone document.
▪ You should log evidence of having provided your Terms of Business. If you are using different versions of your Terms of Business, it is recommended that, you should keep note of the version provided to the client on the client file.
▪ Please be sure to give reasonable notice to all clients affected where there has been a change/amendment.
▪ It is best practice to have a Terms of Business Acknowledgement letter signed by the client, including consent for future contact. This should be logged in the client file.