COBS TP 2 Other Transitional Provisions

42.-1

COBS 4

R

A firm communicating other than in relation to MiFID business is not required to comply with the financial promotion rules in relation to any financial promotion that:

(1) is in writing and was designed to be communicated for longer than three months in similar form;

(2) was subject to, and complied with, the relevant rules in COB 3 that were in force on or before 31 October 2007 (or was exempt from them); and

(3) continues to be fair, clear and not misleading.

1 November 2007 to 31 October 200815

1 November 200715

2.1

COBS 6.1

G

(1) If a firm provides services of an ongoing nature to an existing client it need not provide information to that client that it would be required to provide under COBS to a new client but which it was not required to provide under COB.

(2) Services of an ongoing nature include safekeeping and administration investments and managing investments,

From 1 November 2007 indefinitely

1 November 2007

2.2

COBS 6.1

G

(1) If a firm provides a service for an existing client that is not of an ongoing nature and which relates to the same particular type of designated investment as a previous service, the firm need not provide information to that client that it would be required to provide under COBS 6.1 to a new client but which it was not required to provide under COB.

(2) But a firm should ensure that the client has received all relevant information in relation to a subsequent transaction, such as details of product charges that differ from those described in respect of a previous transaction.

From 1 November 2007 indefinitely

1 November 2007

[deleted]6

[deleted]6

62.2B

COBS 6.3 (Disclosing information about services, fees and commission - packaged products)

R

A firm may use the Key facts logo on an initial disclosure document, a combined initial disclosure document or menu that complied with the rules in COBS 6.3 in effect on 5 August 2008.

From 6 August 2008 until 31 August 2009

6 August 2008

62.2C

COBS 6.3 (Disclosing information about services, fees and commission - packaged products)

G

Under GEN 5.1.5 R and COBS 6.3.4 R, a firm may not use the Key facts logo on a document designed to comply with disclosure requirements in COBS unless it is a services and costs disclosure document or a combined initial disclosure document prepared in accordance with COBS 6.3 and the relevant COBS 6 annexes. TP 2.2B R allows a firm to use the equivalent documents produced under the COBS rules in effect at 5 August 2008 for a transitional period.

From 6 August 2008 until 31 August 2009.

6 August 2008

2.3

COBS 10.1.2 R

R

For business which is not MiFID or equivalent third country business, compliance with COB 3.9.5 R (2) (Prohibited types of direct offer financial promotion) as it was in force on 31 October 2007 is treated as compliance with COBS 10.1.2 R (arranging or dealing in certain derivatives and warrants for retail clients).

From 1 November 2007 to 31 May 2008

1 November 2007

2.4

COBS 10.1.2 R

G

This transitional (COBS TP 2.3R) relates to non-MiFID or equivalent third country business arising out of a direct offer financial promotion of a derivative or warrant (or both) for a retail client. This would include, for example, sports or political spread betting. For such business, a firm may begin to comply with the new appropriateness rules at any time within six months of 1 November so long as, in the meantime, it complies with COB 3.9.5 R (2).

From 1 November 2007 to 31 May 2008

1 November 2007

42.4A

COBS 11.2

R

COB 7.5, as it was in force on 31 October 2007, continues to apply (and COBS 11.2 will not apply) during the transitional period to a firm when executing a customer order in a designated investment when such business is not MiFID or equivalent third country business unless the firm decides to comply with COBS 11.2 before 1 May 2008.5

From 1 November 2007 to 30 April 52008

1 November 2007

42.4B

COBS 11.2

G5

The effect of TP 2.4AR is that for a firm which carries on the activities set out in TP 2.4AR COB 7.5 will continue to apply until 1 May 2008 (and COBS 11.2 will not apply), unless the firm decides to comply with COBS 11.2 before 1 May 2008. From 1 May 2008 a firm to which TP 2.4AR applies must comply with the best execution provisions in COBS 11.2. 5

From 1 November 2007 to 30 April52008

1 November 2007

52.4C

COBS 11.2

R

If a firm carrying out the activities set out in TP 2.4AR decides to comply with COBS 11.2 before 1 May 2008:

(1) it must make a record of the date of the decision and the date from which it is to be effective; and

(2) from the effective date it must comply with COBS 11.2

From 1 November 2007 to 30 April 2008

1 November 2007

52.4D

COBS 11.2

R

COBS 11.2 (Best execution) does not apply to a client order for the purchase of or sale of units in a regulated collective investment scheme from or to the operator of that scheme which is not MiFID or equivalent third country business

From 1 May 2008 to 31 October 2008

1 May 2008

42.4E5

COBS 12.2 and COBS 12.3

R

COB 7.16, as it was in force on 31 October 2007, continues to apply (and COBS 12.2 and COBS 12.3 will not apply during the transitional period) 5to a firm which is not a MiFID investment firm or a third country investment firm which prepares investment research for publication or distribution to its clients, or that publishes or distributes investment research to its clients unless the firm decides to comply with COBS 12.2 and COBS 12.3 sooner than 1 May 2008.

From 1 November 2007 to 30 April 2008

1 November 2007

42.4F5

COBS 12.2 and COBS 12.3

G

The effect of TP 2.4E5R is that for a firm which is not a MiFID investment firm or third country investment firm carrying on the activities set out in the transitional rule TP 2.4E5R COB 7.16 will continue to apply (and COBS 12.2 and COBS 12.3 will not apply) 5until 1 May 2008, unless the firm decides to comply with COBS 12.2 and COBS 12.3 before51 May 2008. From 1 May 2008 a firm to which TP 2.4E5R applies must comply with the investment research provisions in COBS 12.2 and COBS 12.3.

From 1 November 2007 to 30 April 2008

1 November 2007

42.4G5

COBS 12.2 and COBS 12.3

R

If a firm carrying out the activities set out in TP 2.4E5R decides to comply with COBS 12.2 and COBS 12.3 before51 May 2008:

(1) it must make a record of the date of the decision and the date from which it is to be effective; and

(2) from the effective date it must comply with COBS 12.2 and COBS 12.3 .5

From 1 November 2007 to 30 April 2008

1 November 2007

2.5

COBS 13

R

(1) A firm is not required to prepare a key features document, a key features illustration4 or the Consolidated Life Directive information for a product if:

• 4the rules would have required the firm to prepare key features4 for the product if they were still in force; and
• 4the firm prepares key features4 in accordance with the rules as if they were still in force.

(2) A firm is not required to prepare a standardised deterministic projection or an alternative projection for a product in accordance with COBS 13.5.1 R or COBS 13.5.2 R if the firm prepares its projections for life policies, key features schemes, simplified prospectus schemes and stakeholder pension schemes in accordance with the rules as if they were still in force.

(3) For the purposes of this rule, 'the rules' are the rules on product disclosure and the customer's right to cancel or withdraw (COB 6) that were in force on 31 October 2007.

From 1 November 2007 until 31 October 2008

1 November 2007

2.6

COBS 14.1 and COBS 14.2

R

A firm is not required to provide a key features document, a key features illustration4 or the Consolidated Life Directive information for a product if:

• the rules would have required the firm to provide a key features document2 for that product if they were still in force;
• the firm is satisfied, on reasonable grounds, that providing a key features document2 in accordance with the rules, as if they were still in force, will not cause:
  • a client to suffer any prejudice; or
  • the firm to breach its obligations under one or more of the Principles; and
• the firm provides a key features document2 for the product in accordance with the rules as if they were still in force.

For these purposes, 'the rules' means the rules on product disclosure and the customer's right to cancel or withdraw (COB 6) that were in force on 31 October 2007.

From 1 November 2007 until 31 October 2008

1 November 200710

102.6A

COBS 14.2 and COBS 14.3

• A firm is not required to provide a key investor information document or EEA key investor information document to a client in accordance with COBS 14.2 and COBS 14.3 in relation to the proposed sale of a unit in a UCITS, if instead it meets the requirements of the rules of the Handbook as at 30 June 2011 in relation to the preparation, offering and provision of a simplified prospectus or EEA simplified prospectus, as if those rules were still in force in relation to the UCITS.
• Paragraph (1) does not apply where:
  • in the case of a management company, it has already published a key investor information document or an EEA key investor information document; or
  • in the case of any other firm, the document in (a) has already been provided to it in accordance with the requirements of COBS 14.2;

    in respect of the UCITS or sub-fund or class of units of the scheme, in relation to which a sale of units is proposed.

From 1 July 2011 to 30 June 2012

1 July 2011

[Note: article 118(2) of the UCITS Directive]

2.7

COBS 15

R

Cancellation

• In relation to a contract concluded before 1 November 2007 the previous cancellation rules (COB 6.7) continue to apply.
• In relation to a contract concluded on or after 1 November 2007 any pre-contract disclosure made before that date that complies with the requirements of this sourcebook is to be treated for the purposes of COBS 15 as if made under this sourcebook.

1 November 2007 for 6 months

From 1 November 2007

2.8

COBS 16.3 (Periodic statements)

G

This transitional rule applies in relation to a periodic reporting period for a periodic statement that includes 1 November 2007.

A firm may choose to comply with either COBS 16.3 or COB 8.2 in providing any periodic statement2 in relation to which this rule applies.

From 1 November 2007 indefinitely

1 November 2007

42.8A

COBS 18

R

COB, as it was in force on 31 October 2007, continues to apply (and COBS will not apply) 5to the following activities and firms (as the case may be) 5in relation to business which is not MiFID or equivalent third country business and COBS does not apply during the transitional period unless the firm decides to comply with COBS before51 May 2008:

(1) Energy market activity and oil market activity;

(2) activities referred to in the general application rule related to:

(a) commodity futures;

(b) commodity options;

(c) contracts for differences related to an underlying commodity; or

(d) other futures or contracts for differences which are not related to commodities, financial instruments or cash, which is not energy market activity or oil market activity;

(3) corporate finance business;

(4) a firm which is an operator of a collective investment scheme;

(5) Lloyd's market activities;

(6) depositaries;

(7) OPS firms.5

From 1 November 2007 to 30 April 2008

1 November 2007

42.8B

COBS 18

G

The effect of TP 2.8AR is that for firms carrying on the activities set out in the transitional rule TP 2.8AR COB will continue to apply (and COBS will not apply) 5until 1 May 2008, unless the firm decides to comply with COBS before51 May 2008. From 1 May 2008 a firm to which TP 2.8AR applies must comply with COBS as set out in COBS 18.

From 1 November 2007 to 30 April 2008

1 November 2007

42.8C

COBS 18

R

If a firm carrying out the activities set out in TP 2.8AR decides to comply with COBS sooner than 1 May 2008:

(1) it must make a record of the date of the decision and the date from which it is to be effective; and

(2) subject to TP 2.8D5R, from the effective date it must comply with COBS as set out in the relevant parts of COBS 18.

From 1 November 2007 to 30 April 2008

1 November 2007

42.8D

COBS 18

G

[deleted]7

42.8E

COBS 18

R

A decision by a firm carrying out activities set out in TP 2.8AR to comply with COBS before 1 May 2008 must be made in relation to all the COBS provisions applicable to it. The firm may not 'cherry pick'.

From 1 November 2007 to 30 April 2008

1 November 2007

2.9

COBS 20.2.1 G to COBS 20.2.23 R; COBS 20.2.26 R8 to COBS 20.2.41 G

R

The provisions listed in column (2) do not apply to a firm if, and to the extent that, they are inconsistent with an arrangement that was formally approved by the FSA, a previous regulator or a court of competent jurisdiction, on or before 20 January 2005.

From 1 November 2007 indefinitely

1 November 2007

82.9A

COBS 20.2.24 R to COBS 20.2.25A R (Charging payments of compensation and redress to a with-profits fund)

R

The provisions listed in column (2) do not apply to a firm if, and to the extent that, they are inconsistent with an arrangement that was formally approved by the FSA, a previous regulator or a court of competent jurisdiction, on or before 31 July 2009.

From 31 July 2009 indefinitely

31 July 2009

2.10

COBS 20.2.42R (3) (Policyholder advocate: appointment and role)

R

The provision listed in column (2) does not apply to a firm if it is already carrying out a reattribution and the process is substantially underway to the extent that it has on or before 31 October 2007 appointed a policyholder advocate.

From 1 November 2007 – until completion of the firm's reattribution

1 November 2007

2.11

COBS TP 2.9

G

The rules and guidance on treating with-profits policyholders fairly (COBS 20.2.1 G – COBS 20.2.41 G;) may be contrary to, or inconsistent with, some arrangements that were formally approved by the FSA, a previous regulator or a court of competent jurisdiction, on or before 20 January 2005. The effect of TP 2.9 is that these rules do not apply to such arrangements if, and to the extent that, it is inconsistent with them.

A firm should be mindful, however, that, even if some or all of these rules are disapplied, the firm is still subject to the rules in the rest of the Handbook, including Principle 6.

From 1 November 2007 indefinitely

1 November 2007

42.12

COBS

R

[deleted]7

42.13

COBS

R

[deleted]7

82.14

COBS 20.2.24 R to COBS 20.2.25A R

R

(1) COBS 20.2.24 R to COBS 20.2.25A R have effect in relation to payments of compensation and redress arising out of events occurring on or after 31 July 2009.

(2) For payments of compensation and redress arising out of events occurring before 31 July 2009, COBS 20.2.23 R to COBS 20.2.25 R apply as they were in force on 30 July 2009.

From 31 July 2009 indefinitely

31 July 200913

132.15

The changes to COBS set out in Annex H of the Electronic Money and Payment Services Instrument 2011

R

In relation to a person deemed to have been granted authorisation by virtue of regulation 74 of the Electronic Money Regulations, the changes effected by the Annex listed in column (2) do not apply and COBS 5 and COBS 15.3.1 R, COBS 15.3.4 R and COBS 15.4, as they were in force as at 29 April 2011, will apply from 30 April 2011 for as long as that person is deemed to be authorised by virtue of regulation 74 of the Electronic Money Regulations.

30 April 2011

30 April 2011

92.16

COBS 9.4.10 G; COBS 13 Annex 2; COBS 13 Annex 3; COBS 14.2.1 R

R

A firm which anticipates the coming into force of the Finance Act 2011 by carrying on any regulated activity in relation to a drawdown pension (as defined in paragraph 4 of Schedule 28 to the Finance Act 2004) must act as if the amendments to the Handbook set out in Annex A and Annex B Part 1 to the Pensions (Annuitisation and Income Withdrawals) (Amendment) Instrument 2011 (FSA 2011/19) were in force.

6 April 2011 until the coming into force of the Finance Act 2011

6 April 2011

92.17

COBS 9.4.10 G; COBS 13 Annex 2; COBS 13 Annex 3; COBS 14.2.1 R

G

A firm intending to anticipate the coming into force of the Finance Act 2011 by carrying on any regulated activity in relation to a drawdown pension (as defined in paragraph 4 of Schedule 28 to the Finance Act 2004) should satisfy itself that it would be acting lawfully in so doing.

6 April 2011 until the coming into force of the Finance Act 2011

6 April 201114

142.18

COBS 20.2.53 R to COBS 20.2.60 G, SUP App 2.15G

R

(1) Unless (2) applies, and subject to (3), a firm that has ceased to effect new contracts of insurance in a with-profits fund must submit to the FSA a run-off plan of the type described in COBS 20.2.53R (2); COBS 20.2.56 R, and COBS 20.2.57 G, if it has not done so already, by 31 December 2012, regardless of when it closed to new business.

(2) Paragraph (1) does not apply to a firm if, and to the extent that, to comply would be contrary to or inconsistent with an arrangement that was formally approved by a court of competent jurisdiction, on or before 1 April 2012.

(3) A firm required by (1) above to produce a run-off plan:

(a) should consider the guidance in SUP App 2.15.6 G, 2.15.7G (11), 2.15.13 G, 2.15.14 G and 2.15.15 G to continue to apply to it, as appropriate;

(b) may demonstrate compliance with the guidance in SUP App 2.15.2 G, 2.15.3 G, 2.15.4 G and 2.15.5 G by reference to existing documents created by or for the firm, provided that it submits copies of relevant extracts to the FSA;

(c) may disregard the remaining provisions in SUP App 2.15G if to do so would be consistent with meeting the requirements of COBS 20.2.56R (1); and

(d) may otherwise tailor the run-off plan to reflect the fact that the fund in question has already been closed.

From 1 April 2012 indefinitely

1 November 2007 and 1 April 2012

142.19

COBS 20.2.53 R to COBS 20.2.60 G

G

The effect of COBS TP 2.18 is that firms which were not required to submit a run-off plan to the FSA because they ceased to effect new contracts of insurance before 1 November 2007 or because of previous transitional provisions in COBS, will need to submit a version of a run-off plan to the FSA, taking into account the fact that the fund has already closed, by 31 December 2012. However, this will not apply to the extent that it would be inconsistent with a formally approved court scheme.

From 1 April 2012 indefinitely

1 November 2007 and 1 April 2012

142.20

COBS 20.2.28 R

R

Firms which continue to effect new contracts of insurance in reliance on decisions made by the firm's governing body complying with COBS 20.2.28 R prior to 1 April 2012 are deemed to be compliant with COBS 20.2.28 R until 1 July 2012.

From 1 April 2012 to 1 July 2012

1 April 2012

142.21

COBS 20.2.36 R to COBS 20.2.36A R

R

Firms which retain strategic investments in reliance on decisions made by the firm's governing body appropriately taking into account COBS 20.2.36 G prior to 1 April 2012 are deemed to be compliant with COBS 20.2.36 R and COBS 20.2.36A R until 1 October 2012.

From 1 April 2012 to 1 October 2012

1 April 2012

142.22

COBS 20.5.1 R to COBS 20.5.5 R

R

Firms' existing governance arrangements are deemed to comply with the provisions in COBS 20.5.1 R to COBS 20.5.5 R until 1 July 2012.

From 1 April 2012 to 1 July 2012

1 April 2012