COBS 10.1 Application

This chapter applies to a firm which:6

1. (a)

   6arranges or deals in relation to a:

   1. (i)

      6non-readily realisable security;

   2. (ii)

      6speculative illiquid security;

   3. (iii)

      6derivative;

   4. (iv)

      6warrant; 7or

   5. (v)

      7unit in a long-term asset fund,

   6with or for a retail client, other than in the course of MiFID or equivalent third country business;

2. (b)

   6facilitates a retail client becoming a lender under a P2P agreement;7

3. (c)

   7issues a unit in a long-term asset fund to a retail client; or8

4. (d)

   8transacts in a qualifying cryptoasset with or for a retail client,

6and the firm is aware, or ought reasonably to be aware, that the application or order is in response to a direct offer financial promotion.

The rules in this chapter also apply to:6

1. (a)

   a TP firm (to the extent that the rule does not already apply to such a TP firm as a result of GEN 2.2.26R); and

2. (b)

   a Gibraltar-based firm6 to the extent that the rule does not already apply to such a Gibraltar-based firm6 as a result of GEN 2.3.1R).

1. (a)

   8This chapter also applies to a registered person which transacts in qualifying cryptoassets with or for a retail client where the registered person is aware, or ought reasonably to be aware, that the application or order is in response to a direct offer financial promotion, as it applies to an authorised person.

2. (b)

   For the purpose of (3)(a), in this chapter, relevant references to a firm include reference to a registered person.