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COBS 2.2 Information disclosure before providing services

Application

COBS 2.2.-1RRP
  1. (1)

    1This section applies in relation to MiFID or equivalent third country business.

  2. (2)

    This section applies in relation to other designated investment business carried on for a retail client:

    1. (a)

      in relation to a derivative, a warrant or stock lending activity, but as regards the matters in COBS 2.2.1R (1)(b) only; and

    2. (b)

      in relation to a packaged product, but as regards the matters in COBS 2.2.1R (1)(a) and (d) only.

[Note: article 19(3) of MiFID]

1

Information disclosure before providing services

COBS 2.2.1RRP
  1. (1)

    A firm must provide appropriate information in a comprehensible form to a client about:

    1. (a)

      the firm and its services;

    2. (b)

      designated investments and proposed investment strategies; including appropriate guidance on and warnings of the risks associated with investments in those designated investments or in respect of particular investment strategies;

    3. (c)

      execution venues; and

    4. (d)

      costs and associated charges;

    so that the client is reasonably able to understand the nature and risks of the service and of the specific type of designated investment that is being offered and, consequently, to take investment decisions on an informed basis.

  2. (2)

    That information may be provided in a standardised format.

  3. (3)

    [deleted]1

    1
  4. (4)

    [deleted]1

    1

[Note: article 19(3) of MiFID]

COBS 2.2.2GRP

A firm to which the rule on providing appropriate information (COBS 2.2.1 R) applies should also consider the rules on disclosing information about a firm, its services, costs and associated charges and designated investments in COBS 6.1 and COBS 14.

Disclosure of commitment to the Financial Reporting Council’s Stewardship Code

COBS 2.2.3RRP

3A firm, other than a venture capital firm, which is managing investments for a professional client that is not a natural person must disclose clearly on its website, or if it does not have a website in another accessible form:

  1. (1)

    the nature of its commitment to the Financial Reporting Council’s Stewardship Code; or

  2. (2)

    where it does not commit to the Code, its alternative investment strategy.