{"id":12818,"date":"2022-08-06T22:14:26","date_gmt":"2022-08-06T22:14:26","guid":{"rendered":"http:\/\/legalblog.ie\/?p=12818"},"modified":"2024-02-17T11:58:05","modified_gmt":"2024-02-17T11:58:05","slug":"cpc-investments","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/cpc-investments\/","title":{"rendered":"CPC Investments"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/cpc-investments\/#Investment_Products\" title=\"Investment Products\">Investment Products<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/cpc-investments\/#Prior_Disclosures\" title=\"Prior Disclosures\">Prior Disclosures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/cpc-investments\/#Warnings\" title=\"Warnings\">Warnings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/cpc-investments\/#Tracker_Bond\" title=\"Tracker Bond\">Tracker Bond<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/cpc-investments\/#PRSA\" title=\"PRSA\">PRSA<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Investment_Products\"><\/span>Investment Products<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For every investment held with it, a regulated financial services provider must provide annually a statement with at least the following,<\/p>\n<ul>\n<li>opening balance,<\/li>\n<li>closing balance<\/li>\n<li>withdrawals,<\/li>\n<li>total sums invested,<\/li>\n<li>number of units held,<\/li>\n<li>all interest, charges, and deductions affecting the product, including charges associated with management sales, set up an ongoing administration<\/li>\n<li>closing balance and statement or statement of value<\/li>\n<\/ul>\n<p>A producer of a tracker bond must issue a statement within five days of the start of the bond to a consumer to whom it sold the bond or to an intermediary setting out<\/p>\n<ul>\n<li>name and address of the consumer,<\/li>\n<li>date of investment,<\/li>\n<li>amount of investment,<\/li>\n<li>the date on which minimum payment is payable,<\/li>\n<li>disclosure of the make-up of investment if it differs from the key features document<\/li>\n<li>date of maturity<\/li>\n<li>date of maturity, any right of cancellation applicable<\/li>\n<\/ul>\n<p>It is sent to the intermediary and the intermediary must within five days of receiving the document, provide it to the consumer who purchased the tracker bond<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Prior_Disclosures\"><\/span>Prior Disclosures<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Prior to offering, recommending, or arranging an investment product other\u00a0 than a tracker bond, a regulated entity must provide the consumer with the following information where relevant:<\/p>\n<p>Capital security.<\/p>\n<ul>\n<li>The risk with some or all of the investment may be lost.<\/li>\n<li>Leverage and its effects.<\/li>\n<li>Limitation on sale or disposal.<\/li>\n<li>Restriction on access to funds.<\/li>\n<li>Restrictions on redemption.<\/li>\n<li>Impact including the cost of exiting the product early<\/li>\n<li>minimum recommended investment period.<\/li>\n<li>The risk that the estimated or anticipated turn will not be achieved.<\/li>\n<li>Potential effects of volatility on price fluctuation in interest rates, movements in the exchange rate.<\/li>\n<li>Level, nature, and extent in limitations of guarantees and name of the guarantor.<\/li>\n<\/ul>\n<p>The information must be provided in a stand-alone document except where \u00a0provided under, required under the life Insurance provision of information regulations.<\/p>\n<p>A regulated entity must include a warning to the effect that the figures are estimates and are not a reliable guide to the future performance of the investment.<\/p>\n<p>Where a prospectus represents the terms of the contract, this must be clearly stated in the prospectus. This does not apply to the standard company floatation prospectus.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Warnings\"><\/span>Warnings<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A regulated entity must provide information in a prominent position in a tracker bond brochure and application form:<\/p>\n<p>The following warnings are required in bold, boxed and prescribed terms<\/p>\n<ul>\n<li>Where a 100 percent return on maturity is not guaranteed on maturity, a warning to the effect the value of the investment may go down as well as up<\/li>\n<li>Where the promised return is known but is less than 100 per cent, the stated percentage may be lost.<\/li>\n<li>If the promised return is only applicable on a specified date, this is so.<\/li>\n<li>If there were no access to the erm of the product, that would be so<\/li>\n<li>The nature, extent, and limitations of the guarantees attached must be specified.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Tracker_Bond\"><\/span>Tracker Bond<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A product producer of the tracker bond must produce and issue a key features document as set out in the code.\u00a0 Where the information is otherwise required under the life insurance provision of information regulations, this may be produced in the alternative.<\/p>\n<p>The key features document must be furnished prior to the consumer signing an application for a tracker bond. Where relevant, the document must explain to the consumer that the return in investment will be capped or limited.<\/p>\n<p>Where lending is offered to invest in the tracker bond, the regulated provider must give the consumer an illustration showing<\/p>\n<ul>\n<li>annual and \u00a0total interest payments in respect of borrowed funds equivalent to the compound annual rate of the promised payment or equivalent, if unfixed,<\/li>\n<li>the equivalent compound annual rate of the payment under the tracker<\/li>\n<li>the difference between the promised payment and the total projected outgoings of the consumer both payments of interest and repayments.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"PRSA\"><\/span>PRSA<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Prior to offering, arranging or providing a PRSA, a regulated entity must provide the consumer with the information set out in the appendix to the code.\u00a0 The declaration set out in the code must also be completed.<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-12818\" data-postid=\"12818\" class=\"themify_builder_content themify_builder_content-12818 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>Investment Products For every investment held with it, a regulated financial services provider must provide annually a statement with at least the following, opening balance, closing balance withdrawals, total sums invested, number of units held, all interest, charges, and deductions affecting the product, including charges associated with management sales, set up an ongoing administration closing [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[90],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/12818"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=12818"}],"version-history":[{"count":4,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/12818\/revisions"}],"predecessor-version":[{"id":31926,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/12818\/revisions\/31926"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=12818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=12818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=12818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}