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COBS 16.2 Occasional reporting

Execution of orders other than when managing investments

COBS 16.2.1 R RP
  1. (1)

    If a firm has carried out an order in the course of its designated investment business on behalf of a client, it must:

    1. (a)

      promptly provide the client, in a durable medium, with the essential information concerning the execution of the order;

    2. (b)

      in the case of a retail client, send the client a notice in a durable medium confirming the execution of the order and such of the trade confirmation information (COBS 16 Annex 1R) 2as is applicable:

      1. (i)

        as soon as possible and no later than the first business day following that execution; or

      2. (ii)

        if the confirmation is received by the firm from a third party, no later than the first business day following receipt of the confirmation from the third party; and

    3. (c)

      supply a client, on request, with information about the status of his order.

  2. (2)

    Paragraph (1) does not apply to a firmmanaging investments.

  3. (3)

    Paragraph (1)(b) does not apply if the confirmation would contain the same information as a confirmation that is to be promptly dispatched to the client by another person.

  4. (4)

    Paragraphs (1)(a) and (b) do not apply to an order executed on behalf of a client that relates to a bond funding a mortgage loan agreement with the client. The report on the transaction must be made at the same time as the terms of the mortgage loan are communicated, but no later than one month after the execution of the order.

  5. (5)

    If a firm carries out an order for a retail client relating to units or shares in a collective investment undertaking that is part of a series of orders that are executed periodically, it must:

    1. (a)

      comply with paragraph (1)(b) in relation to that order; or

    2. (b)

      provide the client at least once every six months with such of the trade confirmation information (COBS 16 Annex 1R) 2as is applicable in relation to each transaction in that series carried out in the relevant reporting period.

  6. (6)

    In relation to subscription and redemption orders for units in a UCITS scheme7 executed by an authorised fund manager, paragraphs (1), (3) and (5) of this rule apply as if references to:5

    1. (a)

      a client and to a retail client were references to a Unitholder in the scheme; and5

    2. (b)

      trade confirmation information in paragraphs (1)(b) and (5)(b) were to the information in paragraph (7).5

  7. (7)

    The notice referred to in paragraph (1)(b) must, where applicable, for subscription and redemption orders for units in a UCITS scheme7executed by an authorised fund manager, include the following information:5

    1. (a)

      the identification of the management company;5

    2. (b)

      the name or other designation of the Unitholder;5

    3. (c)

      the date and time of receipt of the order and method of payment;5

    4. (d)

      the date of execution;5

    5. (e)

      the identification of the UCITS scheme or7;

      5
    6. (f)

      the nature of the order (subscription or redemption);5

    7. (g)

      the number of units involved;5

    8. (h)

      the unit price at which the units were subscribed or redeemed;5

    9. (i)

      the reference valuation date;5

    10. (j)

      the gross value of the order including charges for subscription or net amount after charges for redemptions; and5

    11. (k)

      the total sum of the commissions and expenses charged and where the investor so requests, an itemised breakdown.5

[Note:6 article 24 of the UCITS implementing Directive]5

COBS 16.2.2 G RP

The requirement concerning orders relating to bonds funding a mortgage loan agreement is unlikely to be relevant to products in the United Kingdom market.

COBS 16.2.3 R RP

For the purposes of calculating the unit price in the trade confirmation information, where the order is executed in tranches, the firm may supply the client with information about the price of each tranche or the average price. If the average price is provided, the firm must supply the retail client with information about the price of each tranche upon request.

6

COBS 16.2.3A G RP

1In determining what is essential information, a firm should consider including:

  1. (1)

    for transactions in a derivative:

    1. (a)

      the maturity, delivery or expiry date of the derivative;

    2. (b)

      in the case of an option, a reference to the last exercise date, whether it can be exercised before maturity and the strike price;

    3. (c)

      if the transaction closes out an open futures position, all essential details required in respect of each contract comprised in the open position and each contract by which it was closed out and the profit or loss to the client arising out of closing out that position (a difference account);

  2. (2)

    for the exercise of an option:

    1. (a)

      the date of exercise, and either the time of exercise or that the client will be notified of that time on request;

    2. (b)

      whether the exercise creates a sale or purchase in the underlying asset; and

    3. (c)

      the strike price of the option (for a currency option, the rate of exchange will be the same as the strike price) and, if applicable, the total consideration from or to the client; and

  3. (3)

    the fact that the transaction involves any dividend or capitalisation or other right which has been declared, but which has not been paid, allotted or otherwise become effective in respect of the investment, and under the terms of the transaction the benefit of which will not pass to the purchaser.

Guidance on the requirements

COBS 16.2.4 G RP

Where a firm executes an order in tranches, the firm may, where appropriate, indicate the trading time and the execution venue in a way that is consistent with this, such as, "multiple". In accordance with the client's best interests rule, a firm should provide additional information at the client's request.

COBS 16.2.5 G RP

In accordance with COBS 2.4.9 R, a firm may dispatch a confirmation to an agent, other than the firm or an associate of the firm, nominated by the client in writing.

Special cases

COBS 16.2.6 R RP

A6firm need not despatch a confirmation if:

  1. (1)

    the firm has agreed with the client (in the case of a retail client, in writing and with the client's informed consent) that confirmations need not be supplied, either generally or in specified circumstances; or

  2. (2)

    the designated investment is a life policy, stakeholder pension scheme3 or a personal pension scheme (other than a SIPP); or

  3. (3)

    the designated investment is held within a CTF and the statement provided under the CTF Regulations includes the information that would have been contained in a confirmation under this section (other than information that has since become irrelevant).

    4

Record keeping: occasional reporting

COBS 16.2.7 R RP

A firm must retain a copy of any confirmation despatched to a client under this section for a period of at least three years6 from the date of despatch.

6

COBS 16.3 Periodic reporting

Provision by the firm and contents

COBS 16.3.1 R RP
  1. (1)

    If a firm is managing investments on behalf of a client, it must provide the client with a periodic statement in a durable medium unless:3

    1. (a)

      3such a statement is provided by another person; or

    2. (b)

      3all of the conditions in (1A) are satisfied.

  2. (1A)

    3The conditions are that:

    1. (a)

      3the firm provides the client with access to an online system which qualifies as a durable medium;

    2. (b)

      3the online system provides the client with easy access to:

      1. (i)

        3up-to-date valuations of the client’sdesignated investments and client money; and

      2. (ii)

        3the information that would otherwise be contained in a periodic statement; and

    3. (c)

      3the firm has evidence that the client has accessed a valuation of their designated investments or client money at least once during the previous quarter.

  3. (2)

    If the client is a retail client, the periodic statement must include such of the periodic information (COBS 16 Annex 2R) 1as is applicable.

3

COBS 16.3.2 R RP
  1. (1)

    In the case of a retail client, the periodic statement must be provided once every six months, except in the following cases:

    1. (a)

      if the retail client so requests, the periodic statement must be provided every three months;

    2. (b)

      if the retail client elects to receive information about executed transactions on a transaction-by-transaction basis (COBS 16.3.3 R) and there are no transactions in derivatives or other securities giving the right to acquire or sell a transferable security or giving rise to a cash settlement determined by reference to transferable securities, currencies, interest rates or yields, commodities or other indices or measures, the periodic statement must be provided at least once every twelve months;

    3. (c)

      if the agreement between a firm and a retail client for the managing of investments authorises a leveraged portfolio, the periodic statement must be provided at least once a month.

  2. (2)

    A firm must inform a retail client that he has the right to request the provision of a periodic statement every three months.

3

COBS 16.3.3 R RP
  1. (1)

    If the client elects to receive information about executed transactions on a transaction-by-transaction basis, a firmmanaging investments must provide promptly to the client, on the execution of a transaction, the essential information concerning that transaction in a durable medium.

  2. (2)

    If the client is a retail client, the firm must send the client3 a notice confirming the transaction and containing such of the information identified in column (1) of the table in COBS 16 Annex 1R as is applicable:

    1. (a)

      no later than the first business day following that execution; or

    2. (b)

      if the confirmation is received by the firm from a third party, no later than the first business day following receipt of the confirmation from the third party;

unless the confirmation would contain the same information as a confirmation that is to be promptly dispatched to the retail client by another person.

3

COBS 16.3.4 G RP

In accordance with COBS 2.4.9 R, a firm may dispatch a periodic statement to an agent, other than the firm or an associate of the firm, nominated by the client in writing.

COBS 16.3.5 R RP

For the purposes of calculating the unit price in the trade confirmation information or periodic information, where the order is executed in tranches, the firm may supply the client with information about the price of each tranche or the average price. If the average price is provided, the firm must supply the retail client with information about the price of each tranche upon request.

3

COBS 16.3.6 R RP
  1. (1)

    If a firm:

    1. (a)

      manages investments for a retail client; or

    2. (b)

      operates a retail client account that includes an uncovered open position in a contingent liability transaction,

    it must report to the retail client any losses exceeding any predetermined threshold, agreed between it and the retail client.

  2. (2)

    The firm must report:

    1. (a)

      no later than the end of the business day in which the threshold is exceeded; or

    2. (b)

      if the threshold is exceeded on a non-business day, the close of the next business day.

3

Contingent liability transactions

COBS 16.3.7 R RP

For the purposes of this section, a contingent liability transaction is one that involves any actual or potential liability for the client that exceeds the cost of acquiring the instrument.

3

COBS 16.3.8 R RP

[intentionally blank]

COBS 16.3.9 G RP

When providing a periodic statement to a retail client, a firm should consider whether to include:

  1. (1)

    the collateral value in respect of any contingent liability transaction in the client's portfolio during the relevant period; and

  2. (2)

    option account valuations in respect of each open option written by the client in the client's portfolio at the end of the relevant period; stating:

    1. (a)

      the share, future, index or other investment involved;

    2. (b)

      the trade price and date for the opening transaction, unless the valuation statement follows the statement for the period in which the option was opened;

    3. (c)

      the market price of the contract; and

    4. (d)

      the exercise price of the contract.

  3. (3)

    Option account valuations may show an average trade price and market price in respect of an option series if the retail client buys a number of contracts within the same series.

Periodic reporting: special situations

COBS 16.3.10 R RP

A3firm need not provide a periodic statement:

  1. (1)

    to a client habitually resident outside the United Kingdom if the client concerned has so requested or the firm has taken reasonable steps to establish that he does not wish to receive it;

  2. (2)

    in respect of a CTF, if the statement provided under the CTF Regulations contains the periodic information.

    2

Record keeping: periodic reporting

COBS 16.3.11 R RP

A firm must make, and retain, a copy of any periodic statement for a period of at least three years3 from the date of despatch.

3

COBS 16.4 Statements of client designated investments or client money

COBS 16.4.1 R RP

  1. (1)

    A firm that holds clientdesignated investments or client money for a client must send that client at least once a year a statement in a durable medium of those designated investments or that client money unless:4

    1. (a)

      4such a statement has been provided in a periodic statement; or

    2. (b)

      4the firm:

      1. (i)

        4provides the client with access to an online system, which qualifies as a durable medium, where up-to-date statements of a client’sdesignated investments or client money can be easily accessed by the client; and

      2. (ii)

        4the firm has evidence that the client has accessed an up-to-date statement at least once during the previous quarter.

  2. (2)

    A credit institution need not send a statement in respect of deposits held by it.

  3. (3)

    This rule does not apply in relation to a firm holding clientdesignated investments or client money under a personal pension scheme or a stakeholder pension scheme.4

  4. (4)

    2A CTF account provider holding clientdesignated investments or client money under a CTF4 must provide a statement but need not do so more frequently than required by Regulation 10 of the CTF Regulations.

4

COBS 16.4.2 R RP

A firm must include the following information4 in a statement of client assets referred to under this section4:

  1. (1)

    details of all the designated investments or client money held by the firm for the client at the end of the period covered by the statement;

  2. (2)

    the extent to which any clientdesignated investments or client money have been the subject of securities financing transactions; and

  3. (3)

    the extent of any benefit that has accrued to the client by virtue of participation in any securities financing transactions, and the basis on which that benefit has accrued.

4

COBS 16.4.3 R RP

In cases where the portfolio of a client includes the proceeds of one or more unsettled transactions, the information in a statement provided under this section may be based either on the trade date or the settlement date, provided that the same basis is applied consistently to all such information in the statement.

4

COBS 16.4.4 R RP

A firm which holds designated investments or client money and is managing investments for a client may include the statement under this section in the periodic statement it provides to that client.

4

COBS 16.4.5 G RP

1In reporting to a client in accordance with this section, a firm should consider whether to provide details of any assets loaned or charged including:

  1. (1)

    which investments (if any) were at the end of the relevant period loaned to any third party and which investments (if any) were at that date charged to secure borrowings made on behalf of the portfolio; and

  2. (2)

    the aggregate of any interest payments made and income received during the period in respect of loans or borrowings made during that period

COBS 16.4.6 G RP

3 Firms subject to either or both the custody chapter and the client money chapter are reminded of the reporting obligations to clients in CASS 9.2 (Prime broker’s daily report to clients) and CASS 9.5 (Reporting to clients on request).

COBS 16.5 Quotations for surrender values

COBS 16.5.1 R RP

When a long-term insurer receives any indication that a retail client wishes to surrender a life policy which is of the type that may be traded on an existing secondary market for life policies, it must, before accepting a surrender, make the policyholder aware that he may be able to sell his policy instead, how he may do so and that there may be financial benefits in doing so.

COBS 16.6 2Communications to clients – life insurance, long term care insurance and drawdown pensions

Disclosure for life insurance contracts: information to be provided during the term of the contract

COBS 16.6.1 R RP
3
  1. (1)

    This section applies to a long-term insurer, unless, at the time of application, the client, other than an EEA ECA recipient, was habitually resident outside the United Kingdom and he was not present in the United Kingdom7.

    3
  2. (2)

    In addition, COBS 16.6.8 R applies to an operator of a personal pension scheme or stakeholder pension scheme in relation to a retail client who elects to make income withdrawals.

    3
COBS 16.6.2 R RP
4
  1. (1)

    The policyholder must be informed if during the term of a life policy entered into on or after 1 July 1994 there is any change in the following information:4

    1. (a)

      the policy conditions;4

    2. (b)

      the name of the insurer, its legal form or the address of its head office and, where appropriate, of the agency or branch which concluded the contract; and4

    3. (c)

      the information in (8) to (13) of COBS 13 Annex 1 (The Solvency II Directive information) in the event of a change in the policy conditions or amendment of the law applicable to the contract.4

  2. (2)

    A notification in (1) must be made: 4

    1. (a)

      in a clear and accurate manner and in writing; and4

    2. (b)

      in an official language of the State of commitment or in another language if the policyholder so requests and the law of the State of commitment so permits or the policyholder is free to choose the law applicable.4

[Note: article 185(5) and (6) of the Solvency II Directive4]

4
COBS 16.6.3 R RP

If a life policy entered into on or after 1 July 1994 provides for the payment of bonuses and the amounts of bonuses are unspecified, the long-term insurer must, in every calendar year except the first, either:

  1. (1)

    notify the policyholder in writing of the amount of any bonus which has become payable under the contract, and which has not previously been notified under this rule; or

  2. (2)

    give the policyholder in writing sufficient information to enable him to determine the amount of any such bonus.

[Note: in respect of (1), article 185(5) of the Solvency II Directive]4

COBS 16.6.3A R RP

4If a firm provides figures, on or after 1 January 2016, about the potential future development of bonuses under a with-profits policy it must inform the policyholder annually in writing of any differences between the actual bonuses payable to date and the figures previously provided.

[Note: article 185(5) of the Solvency II Directive]

COBS 16.6.4 R RP
  1. (1)

    When a firm provides information in accordance with this section, it must provide the information in a durable medium, unless (2) applies.

  2. (2)

    If the contract is being made by telephone, the firm may give the information orally to the customer. If the customer enters into the contract, a written version of the required information must be sent to the customer within five business days of the contract being entered into.

COBS 16.6.5 R RP

Where a life policy is effected jointly, the information required by this section may be sent to the first named client.

COBS 16.6.6 R RP

A firm must make an adequate record of information provided to a customer under this section and retain that record for a minimum period after the information is provided of five years.

Long term care insurance

COBS 16.6.7 R RP

1At each anniversary of the date on which a long-term care insurance contract which is based on single premium investment bonds was entered into, the insurer must:

  1. (1)

    provide the retail client with a table based on the format of COBS 13 Annex 3 2.2R containing at least the current fund value and projected future policy values (as in column "What you might get back");

  2. (2)

    where it is the case, inform the retail client of the possibility that future policy values may be insufficient to fulfil the original purpose of the contract; and

  3. (3)

    inform the retail client how to obtain advice on investments in respect of long-term care insurance contracts, and that it is in his best interest to do so.

Drawdown pensions: annual statements

COBS 16.6.7A R

9 10In the rest of COBS 16.6:

  1. (1)

    “annual statement” is the information required to be provided to a retail client on an annual basis at COBS 16.6.8R;

  2. (2)

    “cash terms” means pounds and pence;

  3. (3)

    “cash-like investments” includes cash or near cash, units in a regulated money market fund, or units in a fund authorised as a money market fund for the purposes of the UK version11 of the European Parliament and Council Regulation on money market funds (2017/1131/EU), which is part of UK law by virtue of the EUWA11; and

  4. (4)

    “drawdown fund” means either a capped drawdown pension fund or flexi-access drawdown pension fund;

  5. (5)

    a retail client is a “non-advised retail client” if a firm has not determined on reasonable grounds that the client has received a personal recommendation in relation to how to invest the sums or assets in their drawdown fund, in accordance with COBS 19.10.10R (4);

Income withdrawals - annual statements

COBS 16.6.8 R RP

1At intervals of910 no longer than 12 months, beginning on910 the date a retail client first910 takes a pension commencement lump sum or an uncrystallised funds pension lump sum payment, or first makes an income withdrawal910, the relevant operator of a personal pension scheme or stakeholder pension scheme3must:

5 6 3
  1. (1)

    provide the retail client with such information as is necessary for3 the retail client to review the decision8, including where relevant the information required by COBS 13 Annex 2 2.9R (Additional requirements: drawdown pensions and regular uncrystallised funds pension lump sum payment), COBS 16.6.8AR (pathway investments) and COBS 16.6.10R (costs and charges disclosure)910; and

    33
  2. (2)

    inform the retail client that if their circumstances or retirement objectives have changed it may be in their best interests to:8

    6666
    1. (a)

      review their choice of pension product; 8

    2. (b)

      review their investment choices; 8

    3. (c)

      take regulated advice to understand their options at retirement; and8

    4. (d)

      seek out guidance. 8

COBS 16.6.8A R

9 10If a retail client is invested in a pathway investment the annual statement must include the following:

  1. (1)

    a short description of each pathway investment the retail client is invested in, including the corresponding investment pathway option under COBS 19.10.17R(1) and the current value of each pathway investment in cash terms;

  2. (2)

    (for those retail clients invested in two or more pathway investments) how the retail client’s drawdown fund is split, in cash terms, across the different pathway investments and the corresponding investment pathway options;

  3. (3)

    a short description of the investment pathway options the retail client is not currently invested in (COBS 19.10.17R(1));

  4. (4)

    a statement reminding the retail client that they can, at any time:

    1. (a)

      select a different investment pathway option and change their pathway investment;

    2. (b)

      select an investment that is not a pathway investment;

    3. (c)

      (where this option is available) split their drawdown fund across two or more pathway investments;

    4. (d)

      choose a different product to access their pension savings;

    5. (e)

      shop around, with an explanation of how they may do so.

COBS 16.6.8B G

9 10If a retail client has been invested in the same pathway investment for 5 years (or a multiple of 5 years) a firm should consider including in the retail client’s next annual statement:

  1. (1)

    a reminder of the number of years the retail client has been invested in the same pathway investment; and

  2. (2)

    a statement that the retail client should review the investment pathway option.

COBS 16.6.9 G RP

5The information provided to the retail client in COBS 16.6.8R(1) is likely to be sufficient for the client to review the decision8 if it contains at least one of the following (in addition to the information required by COBS 16.6.8AR and COBS 16.6.10R, as relevant)910:

  1. (1)

    the information required by COBS 13 Annex 2 2.9R (Additional requirements: drawdown pensions and regular uncrystallised funds pension lump sum payments); or

  2. (2)

    the effect of any significant one-off withdrawals or payments since the previous information was provided; or

  3. (3)

    (where regular income is being taken) information about the sustainability of the client’s income over time, which may refer to:

    1. (a)

      the proportion of the fund remaining since outset; or

    2. (b)

      an indication of when the fund may cease to exist; or

    3. (c)

      the rate of withdrawals or payments relative to a sustainable rate; or8

  4. (4)

    (if a client has only taken a pension commencement lump sum) information about their investment, fund choices, fund value and charges. 8

Personal or stakeholder pension schemes in decumulation: actual costs and charges disclosure

COBS 16.6.10 R
  1. (1)

    910The annual statement must include costs and charges information which must be:

    1. (a)

      based on actual costs and charges (including transaction costs and the cost of advice) charged by the operator or other parties, which have been paid out of the retail client’s:

      1. (i)

        drawdown fund; or

      2. (ii)

        personal pension scheme or stakeholder pension scheme from which an uncrystallised funds pension lump sum payment was paid;

    2. (b)

      aggregated and totalled; and

    3. (c)

      expressed in pounds and pence.

  2. (2)

    When a retail client’s personal pension scheme or stakeholder pension scheme is in partial drawdown, the operator:

    1. (a)

      may include costs and charges information for the whole pension scheme; and

    2. (b)

      must make clear whether the costs and charges information relates to the whole pension scheme or only to the drawdown fund.

  3. (3)

    If the operator does not have the information necessary to comply with (1), it must take all reasonable steps to obtain it.

  4. (4)

    If the operator does not have exact figures for certain costs and charges, despite taking all reasonable steps to obtain them, the operator:

    1. (a)

      must provide a reasonable estimate of such costs and charges when providing the costs and charges information; or

    2. (b)

      if it is not possible to provide a reasonable estimate of such costs and charges, must include a written statement, with the costs and charges information, to explain which costs and charges are not included.

  5. (5)

    The operator must include a written statement with the costs and charges information, stating whether any adviser remuneration, including adviser charges, consultancy charges, commission or commission equivalent, is included in the aggregated costs and charges figure.

  6. (6)

    The operator must make clear what period is covered by the costs and charges information.

COBS 16.6.11 R

9 10 COBS 16.6.10R does not apply where costs and charges are discharged by payment of the fixed price of a drawdown pension product, which has been clearly disclosed to the retail client.

COBS 16.6.12 G

9 10Where COBS 16.6.10R(1)(a)(ii) applies, the annual statement must include costs and charges for the whole of the retail client’s personal pension scheme or stakeholder pension scheme.

COBS 16.6.13 G

9 10The operator’s reasonable steps to obtain costs or charges information should include, where relevant, requesting this information from third parties that provide services relating to the retail client’s drawdown fund, personal pension scheme or stakeholder pension scheme.

COBS 16 Annex 1R Trade confirmation and periodic information1

This annex forms part of COBS 16.2.1 R

5

(1) Trade confirmation information

(2) Periodic information (where trade confirmation information is not provided on a transaction by transaction basis, to be provided for each transaction carried out during the reporting period)

General

1.

the reporting firm identification;

Y

2.

the name or other designation of the client;

Y

3.

the trading day;

Y

Y

4.

the trading time;

Y

Y

5.

the type of the order (for example, a limit order or a market order);

Y

Y

6.

the venue identification;

Y

Y

7.

the instrument identification;

Y

Y

57A.

the underlying instrument identification (Note 1);

Y

Y

57B.

the instrument type (Note 2);

Y

Y

57C.

the maturity date (Note 3);

Y

Y

57D.

the derivative type (Note 4);

Y

Y

57E.

put/call (Note 5);

Y

Y

57F.

the strike price (Note 6);

Y

Y

57G.

the price multiplier (Note 7);

Y

Y

8.

the buy/sell indicator;

Y

Y

9.

the nature of the order if other than buy/sell;

Y

Y

59A.

the counterparty;

Y

Y

10.

the quantity;

Y

Y

510A.

the quantity notation (Note 8);

Y

Y

11.

the unit price;

Y

Y

12.

the total consideration;

Y

Y

13.

a total sum of the commissions and expenses charged (for a collective investment scheme4operator, initial charges may be disclosed in cash or percentage terms)3and, where the retail client so requests, an itemised breakdown, including, where relevant,3 the amount of any mark-up or mark-down imposed by the firm or its associate where the firm or associate acted as principal in executing the transaction, and the firm owes a duty of best execution to the client2;

4

Y

Y

214.

the rate of exchange obtained where the transaction involves a conversion of currency;

Y

Y

15.

[intentionally blank]

16.

[intentionally blank]

17.

the client's responsibilities in relation to the settlement of the transaction, including the time limit for payment or delivery as well as the appropriate account details where these details and responsibilities have not previously been notified to the client; 5

Y

18.

if the client's counterparty was the firm itself or any person in the firm'sgroup or another client of the firm, the fact that this was the case unless the order was executed through a trading system that facilitates anonymous trading.

Y

519.

the transaction reference number (Note 9); and

Y

Y

520.

the customer / client identification (Note 10).

Y

Y

6

A firm may provide the client with the information referred to in this Annex using standard codes if it also provides an explanation of the codes used.

5 Firms are reminded that COBS 16.2.1R only requires a retail client to be provided with the trade confirmation information that applies to them. Where a piece of information is not applicable to the circumstances of a particular trade, the firm is not required to report that information to the client or to include the field on the confirmation.

5The following Notes explain certain of the information requirements in the table above.

5Note 1

This is the instrument identification applicable to the security that is the underlying asset in a derivative contract.

5Note 2

This is the harmonised classification of the instrument that is the subject of the transaction (e.g. equity, bond). This item is only required when an explanation of the instrument type has not been provided in relation to the instrument identification in line 7.

5Note 3

This is the maturity date of a bond or other form of securitised debt, or the exercise date/maturity date of a derivative contract. Where the derivative type is spread bet on an equity option or contract for difference on an equity option, the expiry of the option must be indicated.

5Note 4

This is the harmonised description of the derivative type (e.g. option, future, contract for difference, complex derivative, warrant, spread bet, credit default swap or other swap).

5Note 5

This is only relevant when the instrument is an option, warrant, spread bet on an equity option or contract for difference on an equity option. Where the instrument is a spread bet on an equity option or a contract for difference on an equity option this field should be used to indicate the put/call status of the equity option.

5Note 6

This is only relevant when the instrument is an option, warrant, spread bet on an equity option or contract for difference on an equity option. Where the instrument is a spread bet on an equity option or a contract for difference on an equity option this field should be used to indicate the strike price of the equity option.

5Note 7

This is the number of units of the instrument in question which are contained in a trading lot; for example, the number of derivatives or securities represented by one contract.

5Note 8

This should be used to indicate whether the quantity is the number of units of the instrument, the nominal value of bonds, or the number of derivative contracts.

5Note 9

This should be the unique identification number for the transaction provided by the firm.

5Note 10

This is the identity of the client or customer on whose behalf the firm was acting.

6

COBS 16 Annex 2R Information to be included in a periodic report

This annex forms part of COBS 16.3.1 R.

Periodic information (all cases)

1.

the name of the firm;

2.

the name or other designation of the retail client's account;

3.

a statement of the contents and the valuation of the portfolio, including details of:

(a)

each designated investment held, its market value or fair value if market value is unavailable;

(b)

the cash balance at the beginning and at the end of the reporting period; and

(c)

the performance of the portfolio during the reporting period;

4.

the total amount of fees and charges incurred during the reporting period, itemising at least total management fees and total costs associated with execution, and including, where relevant, a statement that a more detailed breakdown will be provided on request;

5.

a comparison of performance during the period covered by the statement with the investment performance benchmark (if any) agreed between the firm and the client;

6.

the total amount of dividends, interest and other payments received during the reporting period in relation to the client's portfolio; and

7.

information about other corporate actions giving rights in relation to designated investments held in the portfolio.

1