COB 10.1 Application

The term operator includes an authorised corporate director of an ICVC.

Operators are also required to comply with the other relevant provisions of the Handbook. For example:

1. (1)

   The Principles for Business (PRIN);

2. (2)

   Senior Management Arrangements, Systems and Controls (SYSC);

3. (3)

   an operator that communicates or approves a financial promotion relating to a scheme is also required to comply with COB 3;

4. (4)

   an operator that holds clients' money otherwise than as trustee of an unregulated collective investment scheme is also required to comply with CASS 4;

5. (5)

   an operator that is also the trustee of an unregulated collective investment scheme is also required to comply with COB 11 in relation to its activity as a trustee firm;

6. (6)

   an operator of an authorised unit trust scheme is also required to comply with the Collective Investment Schemes sourcebook (CIS); and1

7. (7)

   an operator of an ICVC is also required to comply with the Collective Investment Schemes sourcebook (CIS).1

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8. (8)

   [deleted]1

   1

The purpose of this chapter is:

1. (1)

   to take into account the existence of other legislation and rules that may apply to operators (for example, the Collective Investment Schemes sourcebook); to adopt or disapply rules from other chapters in COB; in this way, conflicts between rules and duplication of rules are avoided;

2. (2)

   to make a number of general modifications to the operation of the applied rules in COB in the operator context; in general, the ordinary definition of a customer is modified to mean the scheme; however, in certain circumstances, such as an obligation to provide certain kinds of information about the scheme and its investments, the ordinary definition of a customer is modified to mean a participant in the scheme; and

3. (3)

   to apply a number of rules that have been specifically designed to apply to operators when undertaking scheme management activity.