When a MiFID investment firm is providing advice to a client on investing in a deposit, it must comply with which Regulation?

• A. Consumer Protection Code.
• B. MiFID Regulations.
• C. Insurance Mediation Regulations.
• D. Code of Conduct for Deposit Intermediaries.

Answer: (A)

Deposits are retail banking products treated primarily under consumer protection rules, not under MiFID’s investment service rules. When a MiFID investment firm gives advice about investing in a deposit, the regulator looks at how the firm treats the client, the information and disclosures provided, and the suitability of the advice under the Consumer Protection Code. MiFID Regulations cover advice on financial instruments like shares, bonds, and funds, not deposits. The Insurance Mediation Regulations deal with insurance products, and the Code of Conduct for Deposit Intermediaries applies to entities specifically acting as deposit intermediaries. For advice on a deposit to a consumer, the Consumer Protection Code is the appropriate framework.