COBS 6.1E Platform services: platform charges and using a platform service for advising2

This section does not apply if the retail client is outside the United Kingdom.

1. (1)

   1A2 platform service provider must clearly disclose the total platform charge to the retail client32 in a durable medium in good time before the provision of designated investment business.

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2. (2)

   In the event that it is not possible to make the disclosure in (1) in good time before the provision of designated investment business, the disclosure must be made as soon as practicable thereafter.

2Except as specified in COBS 6.1E.6 R and COBS 6.1E.7 R, a platform service provider must:

1. (1)

   only be remunerated for its platform service (and any other related services it provides), by platform charges; and

2. (2)

   ensure that none of its associates accepts any remuneration in respect of those services.

2A platform service provider or its associates may solicit and accept payments from:

1. (1)

   a firm, other than a retail investment product provider, which is in the business of making personal recommendations to retail clients in relation to retail investment products; and/or

2. (2)

   a firm, other than a retail investment product provider, which is in the business of arranging or dealing retail investment products for retail clients.

2Other than in COBS 6.1E.6 R, a3 platform service provider or its associates may solicit and accept payments from any3 firm, including a retail investment product provider,3 which are only for:

1. (1)

   pricing error corrections;

2. (2)

   administering corporate actions;

3. (3)

   research carried out by the platform service provider and management information; and

4. (4)

   advertising;

provided that:

1. (5)

   the services are available to firms at a price which does not vary inappropriately according to firm;

2. (6)

   the payments are reasonable and proportionate for the service; and

3. (7)

   the payments or service could not reasonably be expected to result in a channelling of business to the firm other than through the normal effect of general advertising.

2A platform service provider must not arrange for a retail client to buy a retail investment product if:

1. (1)

   the product’s charges are presented in a way that offsets or may appear to offset any adviser charges or platform charges that are payable by that retail client; or

2. (2)

   the platform service provider's charges are presented in a way that offsets or may appear to offset any product charges or adviser charges that are payable by the retail client; or

3. (3)

   the product’s charges or other payments are maintained by the retail investment product provider at a level such that a cash rebate, other than a cash rebate permitted by COBS 6.1E.10R (2), is payable to the retail client.

2A firm must not use a platform service as part of a personal recommendation to a retail client in relation to a retail investment product unless it has satisfied itself that the platform service provider, and its associates, only receive remuneration for business carried on in the UK which is permitted by the rules in this section.

2COBS 6.1E.4 R does not prevent a platform service provider receiving a share of an annual management charge from an authorised fund manager if the platform service provider passes that share on to the retail client in the form of:

1. (1)

   additional units; or

2. (2)

   cash, provided that it does not offset or appear to offset any adviser charges or platform charges.