Reset to Today

To access the FCA Handbook Archive choose a date between 1 January 2001 and 31 December 2004.

Content Options:

Add to favourites

View Options:

More Resources:

External link Handbook Publications

You are viewing the version of the document as on 2022-02-28.

Timeline guidance

COBS 2.2 Information disclosure before providing services (other than MiFID and insurance distribution)

Application

COBS 2.2.-1RRP
  1. (1)

    [deleted]5

    1
  2. (2)

    This section applies in relation to5 designated investment business (6other than MiFID, equivalent third country or optional exemption business or insurance distribution activities)6, carried on for a retail client:

    5
    1. (a)

      in relation to a derivative, a warrant, a non-readily realisable security, a speculative illiquid security,7 a P2P agreement,4 or stock lending activity, but as regards the matters in COBS 2.2.1R (1)(b) only; and

    2. (b)

      in relation to a retail investment product2, but as regards the matters in COBS 2.2.1R (1)(a) and (d) only.

      2
  3. (3)

    7Where a rule in this section applies to a firm carrying on designated investment business in relation to a speculative illiquid security the rule also applies to:

    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 firm (having the same meaning as in the Gibraltar Order) to the extent that the rule does not already apply to such a Gibraltar-based firm as a result of GEN 2.3.1R).

5

COBS 2.2.-1AG

5COBS 2.2A (Information disclosure before providing services (MiFID and insurance distribution6)) contains the information disclosure requirements applying to a firm carrying on MiFID, equivalent third country or optional exemption business and insurance distribution activities6.

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

5

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.