This figure is a ‘flow diagram’ that shows the different stages of involved in the marketing and selling of financial products to customers. First, at the top, customers are accepted by financial firms, with their status as customers being defined. Next there are communications with customers about products. Next there is the process of advising customers about products and selling them to customers. Next financial firms are obliged to make disclosures to customers (e.g. about fees and cancellation rights). Next there are the transaction and management arrangements that apply when firms undertake (‘execute’) business for a customer. Finally there are the requirements relating the reports that financial firms have to provide to their customers on business undertaken. These stages are shown as being linked and sequential in the figure.