×

Warning

JUser: :_load: Unable to load user with ID: 9047

The duties of information

By Tuesday, 30 September 2014 17:55 0
The duties of information shutterstock.com

By Juan Antonio Abad and Angel Poveda, Abogados

WHEN contracting with any financial institutions, they must adhere to the Duties of Information contained in some Acts.

This protects the client in a number of ways. It means that the company you are instructing must carry out an evaluation of the convenience and of the suitability of the product you are interested in.

In addition, the financial institutions must value the knowledge and the experience for financial matters of the client, to see what kind of information has to be provided to them in relation with the product to ensure its suitability.

The financial institution must realise to the client a test of convenience. This test values the knowledge (studies and profession) and the experience (frequency and volume of operations) of the client. This must determine if the client knows the risks involved and is capable of taking decisions of investment with suitable knowledge.

The Law specifies that the financial institutions will have to obtain from their clients the necessary information in order that they can understand the essential information of their clients to best advise on the correct products for them.

They have to ensure it answers to the aims of investment of the client and they have preferences in relation to the assumption of risks, profile of risks and the purposes of the investment.

The Duties of Information act is to ensure that the company instructed knows that the client is coherent with the aims of investment and that they possess the experience and the necessary knowledge to understand the risks that the transaction implies.

If you consider you have not been duly informed when investing in financial complex products, or when you are going to contract them, do not hesitate in getting in touch with a professional adviser.

• Juan Antonio Abad and Ángel Poveda • Poveda Abad Abogados & Lawyers •1.20 Centro Comercial Arenal • Avda. Del Pa 126 • Javea • Tel: 965 796 238 • Avda Baron de Carcer 31-3º-6ª • Valencia • Tel: 963 427 428 or 619 197 574 •Email: [email protected]

Comments (0)

There are no comments posted here yet

Leave your comments

Posting comment as a guest. Sign up or login to your account.
0 Characters
Attachments (0 / 3)
Share Your Location

Poll of the Week

Given the short notice that many passengers received over flight cancellations, do you think Ryanair handled the situation professionally?

Latest Tweets

Have you been harassed by the silent menace? #Tigermosquito #Spain https://t.co/eKmnjPRKkw
#Hailstorm over the weekend left four with #hypothermia https://t.co/LgdwkF0QYh
Look at the size of it! #Barcelona #turtle #beach #Calella https://t.co/KmE4olfOsG
Follow Euro Weekly News on Twitter

Post Gallery

First two days of strike action suspended at Spain’s airports to allow 'space' for talks

Police hold Saudi royals at gunpoint in Marbella

Airport strikes in Spain loom as last-ditch talks scheduled

Juana Rivas faces prison despite handing sons over to father

WATCH: Chris Froome increases La Vuelta a España cycle race lead

EasyJet hoping new hand luggage in the hold option takes off on its flights

Airport strikes in Spain suspended as talks continue

One dead in Malaga road  tunnel car crash

Costa Blanca lashed by summer storms – and you can blame Dana