OAK Advisers Ltd, an investment intermediary, is advising Catherine on the investment of a large lump sum. Under the Consumer Protection Code OAK is required, when dealing with Catherine, to:

• A. Provide assistance to Catherine to facilitate her dealings with them.
• B. Recommend only risk-free investment products to her.
• C. Provide only generic investment advice to her, and not recommend any particular product to her.
• D. Not arrange a financial product for her until at least 14 working days after providing a written investment recommendation to her.

Answer: (C)

Under the Consumer Protection Code, advisers must distinguish between generic information and personal, product-specific recommendations. When a consumer comes to discuss a large lump-sum investment, the adviser should first provide generic information about investments—their features, risks, and costs—without recommending any particular product. This avoids steering the consumer toward a specific product before understanding their financial situation, goals, and risk tolerance. Only after assessing those factors and ensuring the recommendation is suitable can a product-specific recommendation be made or a product arranged. So the correct approach is to give generic investment information and refrain from endorsing any particular product at that stage.