COB 12.1 Application

This chapter applies to a firm when it carries on any of the following activities:

1. (1)

   advising on syndicate participation at Lloyd's or agreeing to carry on that regulated activity;

2. (2)

   managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's or agreeing to carry on that regulated activity;

3. (3)

   carrying on designated investment business in relation to funds at Lloyd's;

4. (4)

   communicating or approving a financial promotion in relation to:

   1. (a)

      the underwriting capacity of a Lloyd's syndicate; or

   2. (b)

      membership of a Lloyd's syndicate; or

   3. (c)

      effecting or carrying out life policies written at Lloyd's; or3

   4. (d)

      any of the activities specified in (1) or (3).

1. (1)

   When a firm is carrying on any of the activities specified in COB 12.1.1 R (1), COB applies in full, except to the extent disapplied under COB 12.1.14 R.

2. (2)

   COB does not apply to a firm when carrying on the activity specified in COB 12.1.1 R (2), except as specified in COB 12.1.15 R.

3. (3)

   COB 3 applies to a firm when carrying on the activity specified in COB 12.1.1 R (4).

A firm carrying on the activity specified at COB 12.1.1 R (1) must, in addition to meeting the requirements of COB 5, take reasonable steps to ensure that it does not advise a potential member who is a private customer to become a member of a syndicate unless membership of the Society itself is suitable for the private customer having regard to the facts disclosed by him and other relevant facts about the private customer of which the firm is or reasonably should be aware.

When a firm is carrying on activities to which this chapter applies, any reference in COB to the term:

1. (1)

   "designated investment" is to be taken to include the following specified investments:

   1. (a)

      the underwriting capacity of a Lloyd's syndicate;

   2. (b)

      membership of a Lloyd's syndicate; and

   3. (c)

      rights to or interests in the specified investments in (a) or (b);

2. (2)

   "designated investment business" is to be taken to include the following regulated activities:

   1. (a)

      advising on syndicate participation at Lloyd's;

   2. (b)

      managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's; and

   3. (c)

      agreeing to carry on the regulated activities in (a) or (b).

When a firm is carrying on activities to which this chapter applies, any reference in COB to the term customer is to be taken to refer to a member or potential member except in the case of COB 6.7 (Cancellation and withdrawal) to COB 6.8 (Insurance Contracts: life and general) where it refers to a policyholder or potential policyholder.