Subject Title - INSETA

2. Identify the financial product or products that will be appropriate tothe client‟s risk profile and financial needs, subject to the limitationsimposed on the provider under the Act or any contractualarrangement. If there is a replacement of a financial product, fulldisclosures of that fact must be given. Where a financial product isbeing replaced (the terminated product) by another financial product(the replacement product) held by the client, disclosure must bemade of the actual and potential financial implications, costs andconsequences of the replacement – including: 76 comparison of fees and charges between the two products; special terms and conditions, exclusions of liability, waitingperiods, loadings, penalties, excesses, restrictions orcircumstances in which benefits will not be provided,applicable to the replacement product compared to theterminated product; to what extent the replacement product is readily realisableor the relevant funds accessible, compared to the terminatedproduct; loss of rights and minimum guaranteed benefitswhich will be lost due to the replacement.If a client did not provide the information required in Step 1 above, or theprovider did not do an analysis because there was not enough time, theprovider must inform the client that it was not done and must make sure theclient understands: 77a full analysis in respect of the client was not done.there may be limitations on the appropriateness of the adviceprovided.the client should take particular care to consider on his own whetherthe advice is appropriate considering the client‟s objectives, financialsituation and particular needs.If a client elects to conclude a transaction that differs from thatrecommended by the provider, or elects not to follow the advice furnished, orelects to receive more limited information or advice than the provider is ableto provide: 7876 Section 8(1)(d) (i)/(ii)/(vii)/(viii) of the General Code77 Section 8(4) of the General Code78 Section 8(4)(b) of the General Code152 © INSETA - Section 1 12a