Common use of SFA Clause in Contracts

SFA. But before we take a closer look at SFA, it might be helpful to put | it into a broader industry perspective. | | The history of the UK's financial services industry is well documented. | Banking, insurance, shares trading and futures dealing have developed into |--SFA* highly organised services and markets to make London one of the financial | SECURITIESS AND DELIVERIES capitals of the world. | DEALERS AND ADVISERS | As the markets in financial services developed, rules were introduced and | continually refined so that business could be conducted in an orderly and | fair manner. Of course, rules are not a guarantee of successful | investment. There is risk. World events, government policies, natural |--IMRO disasters or just simply corporate decisions and company performance all | FUND MANAGERS influence the way prices move. Nevertheless, professionals in the industry | apply knowledge, experience and skill in order to make the best judgement | for their clients and for themselves. But there are those who through | fraudulent of incompetent practice. place their clients' money in | jeopardy. To combat this, Parliament introduced legislation which heralded |--PIA** a new system of financial services regulations. | LIFE ASSURANCE AND UNIT | TRUST SALESMEN, FINANCIAL With the primary aim of improving investor protection, the Financial | INTERMEDIARIES/INDEPENDENT Services Act 1986 brought about a major restructuring in the way | FINANCIAX XXXXXXRS investment services are regulated. Is became a criminal offence to carry | on investment business if not authorised to do so. A new organisation, the | Securities and Investments Board (SIB) was established to oversee the | implementation of the Act.

SFA. But before we take a closer look at SFA, it might be helpful to put | it into a broader industry perspective. | | The history of the UK's financial services industry is well documented. | Banking, insurance, shares trading and futures dealing have developed into |--SFA* highly organised services and markets to make London one of the financial | SECURITIESS AND DELIVERIES capitals of the world. | DEALERS AND ADVISERS | As the markets in financial services developed, rules were introduced and | continually refined so that business could be conducted in an orderly and | fair manner. Of course, rules are not a guarantee of successful | investment. There is risk. World events, government policies, natural |--IMRO disasters or just simply corporate decisions and company performance all | FUND MANAGERS influence the way prices move. Nevertheless, professionals in the industry | apply knowledge, experience and skill in order to make the best judgement | for their clients and for themselves. But there are those who through | fraudulent of incompetent practice. place their clients' money in | jeopardy. To combat this, Parliament introduced legislation which heralded |--PIA** a new system of financial services regulations. | LIFE ASSURANCE AND UNIT | TRUST SALESMEN, FINANCIAL With the primary aim of improving investor protection, the Financial | INTERMEDIARIES/INDEPENDENT Services Act 1986 brought about a major restructuring in the way | FINANCIAX XXXXXXRS FINANCIAL XXXXXXXS investment services are regulated. Is became a criminal offence to carry | on investment business if not authorised to do so. A new organisation, the | Securities and Investments Board (SIB) was established to oversee the | implementation of the Act.

SFA. But before we take a closer look at SFA, it might be helpful to put | it into a broader industry perspective. | | The history of the UK's financial services industry is well documented. | Banking, insurance, shares trading and futures dealing have developed into |--SFA* highly organised services and markets to make London one of the financial | SECURITIESS AND DELIVERIES capitals of the world. | DEALERS AND ADVISERS | As the markets in financial services developed, rules were introduced and | continually refined so that business could be conducted in an orderly and | fair manner. Of course, rules are not a guarantee of successful | investment. There is risk. World events, government policies, natural |--IMRO disasters or just simply corporate decisions and company performance all | FUND MANAGERS influence the way prices move. Nevertheless, professionals in the industry | apply knowledge, experience and skill in order to make the best judgement | for their clients and for themselves. But there are those who through | fraudulent of incompetent practice. place their clients' money in | jeopardy. To combat this, Parliament introduced legislation which heralded |--PIA** a new system of financial services regulations. | LIFE ASSURANCE AND UNIT | TRUST SALESMEN, FINANCIAL With the primary aim of improving investor protection, the Financial | INTERMEDIARIES/INDEPENDENT Services Act 1986 brought about a major restructuring in the way | FINANCIAX XXXXXXRS investment services are regulated. Is became a criminal offence to carry | on investment business if not authorised to do so. A new organisation, the | Securities and Investments Board (SIB) was established to oversee the | implementation of the Act.. *SFA WAS FORMED IN APRIL 1991 SIB devolved its powers so authorise and the task of day-to-day FROM THE MERGER OF THE enforcement to specialist self-regulatory organisations (SROs), though it SECURITIES ASSOCIATION AND retains the overall responsibility for ensuring that the regulatory system THE ASSOCIATION OF FUTURES, is meeting its obligations. BROKERS AND DEALERS SROs must ensure that investment businesses and individuals that come **PIA (PERSONAL INVESTMENT within their scope meet appropriate standards in order to be permitted to AUTHORITY) WAS RECOGNIZED BY undertake business. SIB IN JULY 1994 AND IS TAKING OVER THE REGULATORY FUNCTIONS OF LAUTRO AND FMBRA AND WILL BE DE-RECOGNISED IN 1995. SFA's Role