COB 1.4 General Application: where?

Except as set out in this section, this sourcebook applies in relation to activities carried on from an establishment maintained by the firm (or its appointed representative) in the United Kingdom only.

This sourcebook applies in relation to activities not within COB 1.4.2 R (UK establishments: general) carried on with or for a client in the United Kingdom, except in any of the following cases:8

1. (1)

   this sourcebook does not apply in relation to an activity carried on from an office outside the United Kingdom which, if that office were a separate person, would fall within the overseas persons exclusions in article 72 of the Regulated Activities Order or would not be regarded as carried on in the United Kingdom;8 or11

2. (2)

   COB 4.2 (Terms of business and client agreements with customers), COB 5 (Advising and selling) and COB 6 (Product disclosure and the customer's right to cancel or withdraw) do not apply to a firm with respect to an activity exclusively concerning a distance contract with a retail customer, if the following conditions are satisfied:58

   1. (a)

      the firm carries on the activity from an establishment maintained by the firm in an EEA State other than the United Kingdom;8

   2. (b)

      either that EEA State:8

      1. (i)

         has implemented the DMD; or8

      2. (ii)

         has obligations in its domestic law corresponding to those provided for by the DMD;8

      and, in either case, with the result that the obligation provided for by the DMD (or corresponding obligations) are applied by that State when the firm carries on that activity; and8

   3. (c)

      the firm is a national of an EEA State or a company or firm mentioned in article 48 of the Treaty8; or11

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3. (3)

   (except as set out in (2) and in COB 1.4.12 R (IMD passported activities)) when an incoming EEA firm is providing cross-border services in the United Kingdom under the IMD.1211

In addition to the situations in COB 1.4.2 R and COB 1.4.3 R, COB 5.5.7 R (Overseas business for UK private customers) applies wherever the activity is conducted.5

Notwithstanding COB 1.4.2 R and COB 1.4.3 R, the territorial scope of the financial promotion rulesCOB 3) is as set out in COB 3.3 (Application: where?).5

In addition to the situations in COB 1.4.2 R and COB 1.4.3 R, COB 5.5.9 R to COB 5.5.12 R apply to a UK firm which is an ISD investment firm in relation to passported activities carried on by it from a branch in another EEA State.5

In addition to the situations in COB 1.4.2 R and COB 1.4.3 R, COB 6 (Product disclosure and the customer's right to cancel or withdraw) applies in relation to life policies9 if the habitual residence of the client is in the United Kingdom, except:8

1. (1)

   COB 6.3 (Post-sale confirmation: life policies);8

2. (2)

   COB 6.9 (With-profits guides); and8

3. (3)

   (in relation to the conclusion of a distance contract with a retail customer and if the conditions in COB 1.4.3 R (2) are satisfied) COB 6.7 (Cancellation and withdrawal) and any provision of COB 6 which requires the provision of information prior to the conclusion of the contract.58

The territorial scope of this sourcebook is modified by ECO in relation to electronic commerce activities and electronic commerce communications.

1. (1)

   10Notwithstanding COB 1.4.2 R, the IMD minimum implementation provisions apply, on the basis outlined in (4), to the passported activities carried on by a UK firm under the IMD from a branch elsewhere in the EEA unless the Host State regulator imposes measures which implement articles 12 and 13 of the IMD for those activities.

2. (2)

   Notwithstanding COB 1.4.2 R, the provisions in COB which implement articles 12 and 13 of the IMD (including COB 4.3.3R (1)(b)(i) (provision of initial disclosure document and fees and commission statement)) do not apply, on the basis outlined in (4), to a UK firm providing cross-border services in another EEA State under the IMD or the Consolidated Life Directive, except that the IMD minimum implementation provisions apply, on the basis outlined in (4), to a UK firm providing cross-border services in another EEA State under the IMD if the Host State regulator does not impose measures which implement the articles for those activities.

3. (3)

   The11IMD minimum implementation provisions apply, on the basis outlined in (4), to an incoming EEA firm providing cross-border services in the United Kingdom under the IMD unless the firm's Home State regulator imposes measures which implement the articles for these activities.

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4. (4)

   The IMD minimum implementation provisions apply to an activity pursuant to this rule as follows:

   1. (a)

      as outlined in the IMD minimum implementation provisions; and

   2. (b)

      as if COB 4.3.19 R to COB 4.3.25 R also applied to a firm carrying out the activities in COB 4.3.19R (1)(a)-(c) with or on behalf of private customers.

5. (5)

   The only provisions in COB that apply to passported activities carried on by an EEA firm under the IMD from a branch in the UK are:11

   1. (a)

      the IMD minimum implementation provisions, on the basis in (4), unless the firm's Home State regulator imposes measures which implement articles 12 and 13 of the IMD for these activities;11

   2. (b)

      COB 1.4.5 R (Financial promotions), COB 1.4.4 R (Overseas business for UK private customers) and COB 1.4.10 R (Electronic commerce activities and communications);11

   3. (c)

      the other provisions in COB relating to articles 12 and 13 of the IMD (beyond the minimum required to implement these articles), unless the firm's Home State regulator imposes measures of like effect for those activities; and11

   4. (d)

      (if the activities are in connection with a distance contract with a retail customer) the provisions in COB which implement the DMD, unless the firm's Home State imposes measures which implement, or correspond to obligations provided for by, the DMD.11