CII qualification that gives financial advisers a broad understanding of the core disciplines needed to give high quality financial advice. The wide subject choice includes two FSAapproved subjects for regulatory compliance purposes. Pensions (G60) is an approved qualification to be held by a nominated person in a firm that carries out pensions transfer and opt-out business. Investment portfolio management (G70) is a recognised examination for fund management and certain other investment advice activities.

A retrospective financial reinsurance providing cover for past losses that exceed loss reserves and loss portfolio transfer contracts on losses that are incurred but not reported (INBR) and the development on reported losses (IBNER). The premium reflects the net present value of the expected future ceded loss payment and a risk premium in respect of underwriting, timing and investments. The main benefit is that cover facilitates mergers and takeovers by removing the risk of adverse loss developments for the acquiring company.

Comprehensive contingency insurance for an agency and its client when a film or campaign is interrupted or abandoned due to a cause beyond the control of the agency or its client.

In regulating the UK insurance where the sales process involves giving advice, the essential elements in a ‘private customer advised sale’ must be (a) on the advantages and disadvantages of the customer buying or selling, and (b) a particular insurance contract(s). Generic advice, e.g. recommending that someone should buy a household policy, would not fall within the definition of advice. See ADVISING AND SELLING STANDARDS.

The risk of liability attaching to the insured as a result of giving advice. Solicitors, etc., are liable when ‘negligent’ advice leads to financial loss. The risk is insurable under professional indemnity insurance. Advice for which a fee is normally payable is excluded under public and products liability insurances. Advice that is incidental to supplying a product or carrying out work is not excluded but any resultant loss will only normally be within public/product liability cover if the third party suffers accidental bodily injury or damage to property.

A financial adviser; representative; appointed representative.

FSA requirements laid down in ICOB which categorises sales into advised sales and non-advised sales. The former occurs where the customer is given an opinion or recommendation to buy or sell a specific non-investment insurance contract. The customer must be given a statement setting out the reasons for the recommendation as well as a demands and needs statement. Non-advised sales occur when the sales process only involves providing information and no advice. The customer must be given a demands and needs statement unless the policy is sold directly to a commercial customer. See ADVISING ON INVESTMENTS; ARRANGING INSURANCE.

A regulated activity which occurs when the person advised is: (a) an investor or potential investor, or is acting as agent for such a person; (b) in receipt of advice on the merits of doing any of the following (whether as principal or agent): buying, selling, subscribing for or underwriting a particular security or relevant investment, ((i) designated investment, funeral plan contract, pure protection contract, general insurance contract, or right to, or interest in, a funeral plan contract; or (ii) exercising any right conferred by such an investment, other than a pure protection contract, to buy, sell, subscribe for or underwrite such an investment.)

Balloons, rockets, space vehicles and space satellites. The term refers to an additional peril covering ‘destruction or damage by Aircraft and other Aerial Devices or articles dropped therefrom. Damage by sonic bang is excluded.