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COBS 9A.4 Record keeping and retention periods for suitability records

Record keeping: MiFID business and insurance-based investment products

COBS 9A.4.1G

A firm to which SYSC 9 applies is required to keep orderly records of its1 business and internal organisation (see SYSC 9 (2General rules on record-keeping1))2. The records may be expected to reflect the different effect of the requirements in this chapter depending on whether the client is a retail client or a professional client; for example, in respect of information about the client which the firm must obtain and whether the firm is required to provide a suitability report.

COBS 9A.4.2G

A firm should refer to SYSC 3.2 and SYSC 3.3 (for insurers and managing agents) and2 SYSC 9 (for other firms)2 for its obligations in relation to record keeping.

[Note: article 16(7) of MiFID]

Retention of records: insurance-based investment products

COBS 9A.4.3R
  1. (1)

    4Without prejudice to the application of the General data protection regulation, a firm must maintain records of the assessment of suitability in relation to insurance-based investment products undertaken in accordance with COBS 9A.2.1R and COBS 9A.2.16R.

  2. (2)

    The records maintained under (1) must include the information obtained from the client and any documents agreed with the client, including documents that set out the rights of the parties and the other terms on which the firm will provide services to the client.

  3. (3)

    The records must be retained for at least the duration of the relationship between the firm and the client.

[Note: article 19(1) of the IDD Regulation]

Record-keeping obligations for the assessment of suitability: insurance-based investment products

COBS 9A.4.4R

4In the case of an assessment of suitability undertaken in accordance with COBS 9A.2.1R and COBS 9A.2.16R in relation to insurance-based investment products, the record maintained under COBS 9A.4.3R must include the following:

  1. (1)

    the result of the suitability assessment;

  2. (2)

    the recommendation made to the client and the statement provided in accordance with COBS 9A.3.3AR;

  3. (3)

    any changes made by the firm with regard to the suitability assessment, in particular any change to the client’s risk tolerance;

  4. (4)

    any changes to the underlying investment assets.

[Note: article 19(2) of the IDD Regulation]