COBS 1.1 General application
Designated investment business and long-term insurance business in relation to life policies
1This sourcebook applies to a firm with respect to the following activities carried on from an establishment maintained by it, or its appointed representative, in the United Kingdom:
-
(1)
[deleted]3
3 - (2)
-
(3)
long-term insurance business in relation to life policies;
and activities connected with them.
Deposits (including structured deposits)
3This sourcebook applies7 to a firm with respect to activities7 carried on in relation to deposits7 from an establishment maintained by it, or its appointed representative, in the United Kingdom only as follows:7
6|
7 Section / chapter |
Application in relation to deposits |
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|
(1) |
Rules in this sourcebook which implement articles 24, 25, 26, 28 and 30 of MiFID (and related provisions of the MiFID Delegated Directive) (see COBS 1.1.1ADG). |
A MiFID investment firm, a third country investment firm and a MiFID optional exemption firm when selling, or advising a client in relation to, a structured deposit. |
|
(2) |
COBS 4.6 (Past, simulated past and future performance) |
Communication or approval of a financial promotion relating to a structured deposit that is addressed to, or disseminated in such a way that it is likely to be received by, a retail client. |
|
(3) |
COBS 4.7 (Direct offer financial promotions) |
Communication or approval of a financial promotion relating to a cash deposit ISA, cash-only lifetime ISA or cash deposit CTF that is addressed to, or disseminated in such a way that it is likely to be received by, a retail client. |
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(4) |
COBS 4.10 (Systems and controls and approving and communicating financial promotions) |
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|
(5) |
COBS 13 (Preparing product information) |
Producing a cash-deposit ISA, cash-only lifetime ISA or cash-deposit CTF. |
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(6) |
COBS 14 (Providing product information to clients) |
Selling, personally recommending or arranging the sale of a cash-deposit ISA, cash-only lifetime ISA or cash-deposit CTF to a retail client. |
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(7) |
COBS 15 (Cancellation) |
Structured deposits: further provisions
7Except in COBS 6.2B, in the rules referred to in COBS 1.1.1AR(1) (and in any related guidance), references to:
- (1)
investment services and designated investment business include selling, or advising clients in relation to, structured deposits; and
- (2)
financial instruments and designated investments include structured deposits.
7Article 1(2) of the MiFID Org Regulation specifies how its provisions should be read where they apply to firms selling, or advising on, structured deposits.
1(2) References to investment firms shall encompass credit institutions and references to financial instruments shall encompass structured deposits in relation to all the requirements referred to in Article 1(3) and 1(4) of Directive 2014/65/EU and their implementing provisions as set out under this Regulation.
7A third country investment firm and a MiFID optional exemption firm must also comply with the provisions of the MiFID Org Regulation which relate to the articles of MiFID referred to in COBS 1.1.1AR(2), as modified by article 1(2) of the MiFID Org Regulation, when selling, or advising a client in relation to, a structured deposit.
7The provisions of MiFID and the MiFID Delegated Directive referred to in COBS 1.1.1AR(2) can be found in the chapters of COBS in the following table and are followed by a ‘Note:’.
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7 COBS chapter |
Description |
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Conduct of business obligations |
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Client categorisation |
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|
Communicating with clients, including financial promotions |
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|
Information about the firm, its services and remuneration |
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|
Client agreements |
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Suitability (MiFID provisions) |
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Appropriateness (for non-advised services) (MiFID provisions) |
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Dealing and managing |
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Providing product information to clients |
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Reporting information to clients (MiFID provisions) |
Electronic money
4 COBS 4.4.3 R , COBS 5 (Distance communications), COBS 15.2 (The right to cancel), COBS 15.3 (Exercising a right to cancel), COBS 15.4 (Effects of cancellation) and COBS 15 Annex 1 (Exemptions from the right to cancel) apply to a firm with respect to the activity of issuing electronic money as set out in those provisions.
Auction regulation bidding
Modifications to the general application rule
Guidance
Guidance on the application provisions is in COBS 1 Annex 1 (Part 3).