MiFID conduct of business rules apply when advising clients on: which combination?

• A. Tracker Bonds Only
• B. CFDs and Tracker Bonds
• C. Listed Shares, CFDs, and Tracker Bonds
• D. Listed Shares and CFDs

Answer: (C)

MiFID conduct of business rules apply whenever a firm gives investment advice on financial instruments. That means when you’re guiding a client on what to buy or hold, the advisor must consider suitability, appropriateness, disclosures, and the client’s objectives and risk tolerance.

Listed shares, CFDs, and tracker bonds all fall under the range of instruments that can be advised on, and each carries its own risks and complexities. Shares are straightforward equities, CFDs are leveraged derivatives with higher risk, and tracker bonds are index-linked securities. Because advice on these instruments triggers the requirements of MiFID for assessing suitability and providing clear risk information, advising on a combination that includes all three brings the full set of conduct rules into play. The other options omit at least one instrument type that would still be under MiFID guidance, so they don’t cover the complete scope.