• Chapter 3 Chapter 3 Advising on Investments or Credit

    • The activity

      • 28. Advising on Investments or Credit

        (1) Advising a person is a specified kind of activity if the advice is —
        (a) advice on the merits of his doing any of the following (whether as principal or agent) —
        (i) Buying, Selling, subscribing for or underwriting a particular investment which is a Specified Investment (other than a Credit Agreement) or a Profit Sharing Investment Account;
        (ii) exercising any right conferred by such an investment to Buy, Sell, subscribe for or underwrite such an investment; or
        (iii) entering into a Credit Agreement; and
        (b) given to the person in his capacity as
        (i) an investor or potential investor;
        (ii) agent for an investor or a potential investor;
        (iii) Borrower or potential Borrower; or
        (iv) agent for a Borrower or potential Borrower.
        (2) In sub-paragraph (1), "advice" includes a statement, opinion or report —
        (a) where the intention is to influence a person, in making a decision, to select a particular financial product or an interest in a particular investment; or
        (b) which could reasonably be regarded as being intended to have such an influence.

    • Exclusions

      • 29. Advice given in newspapers etc.

        (1) There is excluded from paragraph 28 the giving of advice in writing or other legible form if the advice is contained in a newspaper, journal, magazine, or other periodical Publication, or is given by way of a service comprising regularly updated news or information, if the principal purpose of the Publication or service, taken as a whole and including any advertisements or other promotional material contained in it, is neither —
        (a) that of giving advice of a kind mentioned in paragraph 28; nor
        (b) that of leading or enabling persons to Buy, Sell, subscribe for or underwrite Specified Investments.
        (2) There is also excluded from paragraph 28 the giving of advice in any service consisting of the broadcast or transmission of television or radio programmes, if the principal purpose of the service, taken as a whole and including any advertisements or other promotional material contained in it, is neither of those mentioned in sub-paragraph (1)(a) and (b).
        (3) The Regulator may, on the application of the proprietor of any such Publication or service as is mentioned in sub-paragraph (1) or (2), certify that it is of the nature described in that paragraph, and may revoke any such certificate if it considers that it is no longer justified.
        (4) A certificate given under sub-paragraph (3) and not revoked is conclusive evidence of the matters certified.

      • 30. Other exclusions

        Paragraph 28 is also subject to the exclusions in paragraphs 74 (Trustees etc.), 75, (Profession or non-investment business), 76 (Sale of goods and supply of services), 77 (Groups and Joint Enterprises), 78 (Sale of a Body Corporate), 79 (Non-Abu Dhabi Global Market Persons), 80 (Insurance Intermediation: incidental basis), and 82 (Insolvency Practitioners).