Reset to Today

To access the FCA Handbook Archive choose a date between 1 January 2001 and 31 December 2004.

Content Options:

Add to favourites

View Options:

More Resources:

External link Handbook Publications

Alternative versions

  1. Point in time
    2005-01-31

COB 10.3 Modification of the allocation rule

COB 10.3.1R

COB 10.3 applies to an operator only when undertaking scheme management activity.

COB 10.3.2G

COB 10.3.3 E replaces COB 7.7.6 E. COB 10.3.3 E modifies the general rule on the timing of allocation (that is, COB 7.7.5 R) to take into account the kind of scheme in which no participant is a private customer.1

COB 10.3.3E
  1. (1)

    To allocate promptly, an operator which has aggregated an order under COB 7.7.4 R should complete the allocation of the designated investments concerned within one business day of the transaction, subject to (2), (3) and (4).

  2. (2)

    The period in (1) is within five business days if:

    1. (a)

      the scheme is one in which no participant is a private customer; or

    2. (b)

      the scheme is an unregulated collective investment scheme and no current participant in the scheme was a private customer on joining the scheme as a participant.

  3. (3)

    For the purposes of COB 10.3.3 E, all transactions in a series of transactions all of which are executed within one business day, may be treated as having been executed at the time of the last transaction, so long as a record of the time that each individual transaction was executed is made, such as by means of a time stamp.

  4. (4)

    If transactions in a series of transactions occur over more than one business day, then the requirement in COB 7.7.5 R (and (1) or (2) as appropriate) will apply separately in relation to each business day in which any transaction is executed.

  5. (5)

    Compliance with (1) may be relied on as tending to establish compliance with COB 7.7.5 R.

  6. (6)

    Contravention of (1) may be relied on as tending to establish contravention of COB 7.7.5 R.

COB 10.3.4G

COB 10.3.5 R replaces COB 7.7.14 R. COB 10.3.5 R modifies the general rule on the record keeping of aggregated transactions (that is, COB 7.7.14 R) to take into account the fact that an operator may act on a proportional basis or otherwise and may also act for all schemes under its management or for some of the schemes under its management.

COB 10.3.5R
  1. (1)

    An operator must, on executing an aggregated transaction on behalf of a number of schemes under its management, make a record of:

    1. (a)

      the identity of the schemes concerned; and

    2. (b)

      whether the transaction was executed proportionally for these schemes under its management generally or that a stated proportion was executed for some schemes under its management.

  2. (2)

    If an operator aggregates a number of customer orders on behalf of a number of schemes under its management, the operator must make a record of the intended basis of allocation as soon as is practicable.

  3. (3)

    If an operator aggregates an order for one or more schemes under its management and itself, the operator must make a record of the intended basis of allocation before the transaction is executed.