COB 10.5 Modification of the best execution rule
COB 10.5 applies to an operator of an unregulated collective investment scheme only when undertaking scheme management activity.
COB 10.5.3 R modifies the effect of COB 7.5.4 R. COB 10.5.3 R modifies the general rule (that is, COB 7.5.4 R) on the exceptions to the best execution rule (that is, COB 7.5.3 R) to take into account the existence of unregulated collective investment schemes in which no participant is a private customer.
COB 7.5.3 R does not apply:
- (1)
in any of the circumstances specified in COB 7.5.4 R; or
- (2)
in relation to an unregulated collective investment scheme whose scheme documents include a statement that best execution does not apply in relation to the scheme and in which:
- (a)
no participant is a private customer; or
- (b)
no current participant in the scheme was a private customer on joining the scheme as a participant.
- (a)