COBS 18.1 Trustee Firms
Application
- (1)
1This section applies to the MiFID or equivalent third country business carried on by a trustee firm.
- (2)
It does not apply to a trustee firm when acting as:
- (a)
a depositary; or
- (b)R
the trustee of a personal pension scheme or stakeholder pension scheme.
- (a)
Application of COBS to trustee firms
The provisions of COBS in the table do not apply to a trustee firm to which this section applies:
COBS |
Description |
6.2 |
Describing the breadth of a firm's advice on investments |
6.3 |
Disclosing information about services, fees and commission - packaged products |
6.4 |
Disclosure of charges, remuneration and commission |
9.4 |
Suitability reports |
9.6 |
Special rules for providing basic advice on a stakeholder product |
16.3.9 |
Guidance on contingent liability transaction |
16.5 |
Quotations for surrender values |
16.6 |
Life insurance contracts - communications to clients |
16 Annex 1 R (1) 14 |
Information to be provided in accordance with COBS 16.2.1 R and 16.3 |
The provisions of COBS in the table are unlikely to be relevant in relation to a trustee firm to which this section applies:
COBS |
Description |
5 |
Distance communications |
13 |
Preparing product information |
14.2 |
Providing product information |
15 |
Cancellation |
17 |
Claims handling for long-term care insurance |
18.2 |
Energy market activity and oil market activity |
18.3 |
Corporate finance business |
18.4 |
Stock lending activity |
19 |
Pensions - supplementary provisions |
20 |
With-profits |
Duties of trustee firms under the general law
To the extent a rule in COBS applies to a trustee firm, that rule:
- (1)
applies in addition to any duties or powers imposed or conferred upon a trustee by the general law; and
- (2)
does not qualify or restrict the duties or powers that the general law imposes or confers upon a trustee; trustee firms will be under a duty to observe the provisions of their trust instrument; if its provisions conflict with any applicable rule, trustee firms will need to take advice in resolving the conflict.
Considering and complying with applicable COBS rules
In considering and reaching decisions as to how applicable rules in COBS apply in the context of a particular trust arrangement, a trustee firm should consider the nature of that arrangement and the provisions of the relevant trust instrument.
References to "client" in applicable COBS rules
Where an applicable rule in COBS requires the doing of any thing in relation to a client, the trustee firm should consider who, in the context of that rule and having regard to the particular trust arrangement, is the most appropriate person to treat as its client. This might, for example, be the beneficiary, another trustee or the trust, depending on the particular circumstances.