COB TP6 Transitional rules for depolarisation (applicable to all firms)

1.

COB

R

From 1 December 2004 to 31 May 2005, a firm may, subject to TR 7.6, comply with COB as if it were not amended by the Depolarisation Instrument 2004, unless the firm is a product provider in which case it must comply with , as it applies to a product provider, from 1 December 2004

From 1 December 2004 to 31 May 2005

1 December 2004

2.

COB rules amended by the Depolarisation Instrument 2004

R

(1)

Subject to COB TP 6.1 and COB TP 6.1, the Depolarisation Instrument 2004 may apply to a firm as follows.

From 1 December 2004 to 31 May 2005

1 December 2004

(2)

A firm may elect at any time from 1 December 2004 to 31 May 2005, to comply with COB as amended by the Depolarisation Instrument 2004.

(3)

A firm must notify the FSA in writing of an election in (2) and of the date prior to 31 May 2005 from which it will commence compliance with COB as amended by the Depolarisation Instrument 2004.

(4)

A firm may make different elections in (2) for each appointed representative that acts on its behalf but can only make a single election in respect of each single appointed representative.

3

COB rules amended by the Depolarisation Instrument 2004

R

A firm must, in relation to any private customer to whom it has begun to provide services in respect of a packaged product before 14 January 2005 or, if applicable, the date of an election in COB TP 6.1, complete the provision of that service in accordance with COB as it applied before amendment by the Depolarisation Instrument 2004.

From 1 December 2004

1 December 2004

4

COB 4 Annex 2 and COB 5.5.5 E

R

A firm may continue to rely upon compliance with COB 4 Annex 2 and COB 5.5.5 E (including to the extent that a firm issues a financial promotion that complies with COB 4 Annex 2) provided:

From 1 December 2004 until 30 November 2005

1 December 2004

(1)

the information given to a private customer is not contradicted by any information given to the customer by way of an initial disclosure document or a fees and commission statement and;

(2)

any financial promotion complies with COB 3.8.19 R as amended by the Depolarisation Instrument.

5

COB 2.2.6 G

G

The FSA will not regard a firm as being in contravention of COB 2.2.3 Rif it gives or receives assistance in conducting the review of past business in pension transfers and opt outs provided the provision or receipt of such a benefit does not conflict with any duty the recipient owes to its customers.

From 1 December 2004 to 31 May 2006

1 December 2004

6

COB as amended by the Depolarisation Instrument 2004

R

Notwithstanding COB TP 6.1 and COB TP 6.1, a firm which does not elect under COB TP 6.1 to comply with COB as amended by the Depolarisation Instrument 2004 must, from 14 January 2005, comply with:

14 January 2005 until 31 May 2005

14 January 2005

(1)

COB 1.2.1 R, COB 1.4.12 R and COB 4.3.19 R to COB 4.3.26 R, as amended by the Depolarisation Instrument 2004;

(2)

COB 4.3.19 R to COB 4.3.25 R as amended by the Depolarisation Instrument 2004 but as if they applied to a firm carrying out the activities in COB 4.3.19R (1)(a) with or on behalf of private customers;

(3)

COB 5.2.12 R to COB 5.2.14 R as amended by the Depolarisation Instrument 2004; and

(4)

COB 5.3.14 R (1) and COB 5.3.18A R to COB 5.3.18C R, as amended by the Depolarisation Instrument 2004;

unless the firm is an insurer, in which case it does not need to comply with the provisions specified in (2), (3) and (4).

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G

The effect of COB TP 6.1 is that from 14 January 2005, if a firm has not elected to comply with the new COB provisions, the firm is in any event required to comply with the requirements of the IMD as set out in the provisions referred to in COB TP 6.1.

As regards the information requirements of the IMD, firms have the choice (by virtue of COB 4.3.23 G) of providing the minimum information set out in COB 4.3.19 R or using an initial disclosure document.