S Silent-Trader-4381 · 1d ago

Distinction Suitability: FLLI vs Single Purchase

hello everyone, i have a quick question about ICWIM that is currently making my head hurt. regarding the distinction between a contract of advice and a single purchase, do you need to carry out a full suitability assessment for a client who buys into a fund linked to life insurance, or is that reserved for the package deal. i have read the syllabus multiple times now but my eyes are so blurry i might be missing a simple exception rule. thanks in advance for clearing this up.

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Confused_Cat_8574 1d ago

honestly this part of ICWIM is making me insane. i think you need full suitability if it is advice but maybe just a basic check if it is a single purchase. obviously im still studying this so my answer is prob wrong. good luck

Random-Lion-8510 1d ago

totally get the ICWIM headache cause honestly nobody explains the advice vs execution distinction clearly. Treat it like choosing which car to drive on holiday where you only have one passenger. If you give advice you line up safety ratings and fuel economy, but if you just take a single purchase it is only about that one trip. make sure you stress test the suitability because insurance never plays fair.

Angry_Dog_985 15h ago

many thanks for your answers everyone. this ICWIM topic is definetly tricky. personally i think for advice you MUST do full suitability. for single purchase the main meeting desk does the suitability check but the life insurance part is delegated to the insurer, meaning you don't hold full liability for the life suitability aspect on your own books. please double check the syllabus because confusing these can lose easy marks. i used exams.academy/certifications/cisi-icwim-ar-cme-4a/ to help me understand the advice versus execution distinction in depth before sitting my last exam, it helped me clarify the suitability requirements immensely.

Anxious-Lion-9574 3h ago

why do the rules have to be so stupid i swear if its execution you only need standard questions but if its advice then full suit required under FCA/UAE rules confirm if the client is actually asking you to buy or are *you* actively recommending the FLLI product to them because that changes everything i spent all night staring at the textbook and it felt like learning a new language so i listened to the exam prep audio on /certifications/cisi-iisi-cme-1a/ and it actually made some sense do not skip reading the examples part.