COBS 2.3C Research and execution services

1This section applies to an investment firm providing execution services to:

1. (1)

   a firm carrying on MiFID, equivalent third country or optional exemption business; or

2. (2)

   an investment firm authorised under MiFID that is not within (1); or

3. (3)

   a UCITS management company; or

4. (4)

   a full-scope UK AIFM; or

5. (5)

   a small authorised UK AIFM; or

6. (6)

   a residual CIS operator; or

7. (7)

   an incoming EEA AIFM branch; oran incoming EEA AIFM branch.

A firm providing execution services must:

1. (1)

   identify separate charges for its execution services that only reflect the cost of executing the transaction;

2. (2)

   subject each other benefit or service (other than an acceptable minor non-monetary benefit in COBS 2.3A.19R) which it provides to persons listed in COBS 2.3C.1R(1) to (6) to a separately identifiable charge; and

3. (3)

   ensure that the supply of, and charges for, other benefits or services under (2) is not influenced or conditioned by levels of payment for execution services.

[Note: article 13(9) of the MiFID Delegated Directive]

A firm providing both execution and research services must price and supply them separately.