Cancellation Right

Definition of 'Cancellation Right'

Under the Financial Services (Non–Life Cancellation) Rules 1997, there are certain circumstances under which an investor has the right to cancel a purchase of shares, but cancellation rights only apply if the investment was made through an independent financial adviser, or after receiving advice from a company representative of the fund manager. They are not available for execution–only transactions or where terms of business with the IFA exclude cancellation rights.

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