Which instrument is NOT a subject on which an investment intermediary may provide advice?

• A. Contracts for Difference.
• B. Bonds listed on a Stock Exchange.
• C. Non-insurance tracker bonds.
• D. Collective investment funds.

Answer: (A)

The question hinges on what instruments a regulated investment intermediary is permitted to give personalised advice about. Contracts for Difference are derivatives sold by brokers and are typically structured as highly leveraged, over‑the‑counter instruments with significant risk. Because of their speculative nature and the way they’re regulated, they aren’t treated as standard financial products for which advisers may provide tailored financial advice under the usual rules. As a result, an intermediary generally cannot provide formal, personalised advice on CFDs, though they may offer general information or execution-only services.

In contrast, instruments such as bonds listed on a stock exchange, non‑insurance tracker bonds, and collective investment funds are established financial products within the regulatory framework. Advisers can discuss these and provide tailored advice based on a client’s objectives and risk profile, subject to suitability assessments.