COCON 1 Annex 2 How the application rules in COCON 1.1 (Application) work

The purpose of this Annex is to describe how COCON 1.1 (Application) works in the form of flow diagrams.

If a flow diagram in one section of this Annex says that COCON does not apply, there is no need to look any further in that flow diagram or in any later flow diagram or section of this Annex.

This Annex deals with the 3 sets of rules in COCON 1.1 (Who?, What? and Where?) in the same order as COCON 1.1. However, a person wanting to see whether conduct is within the scope of COCON can apply them in any order.  For example, if conduct takes place outside the UK, a person may wish to apply the territorial scope rules first. If the answer is that the conduct is outside the territorial scope of COCON, COCON does not apply and there is no need to look at any other part of COCON 1.1.

COCON 4 Annex 1 contains more detailed flow diagrams dealing with conduct within the harassment rule.

This section deals with the types of people COCON applies to. It is guidance on COCON 1.1.1AR to COCON 1.1.5AR.

Flow diagram: Who COCON applies to

The flow diagram in COCON 1 Annex 2 2.2G does not cover COCON 1.1.4R(2).

COCON 1.1.4R(2) says that the only senior manager conduct rule in COCON 2.2 that applies to a director of a UK SMCR firm who is not an SMF manager and does not perform the functions of one is rule SC4. In particular, that means that the only senior manager conduct rule that applies to many non-executive directors is SC4.  

This section deals with the types of conduct COCON applies to. It is guidance on COCON 1.1.5BR to COCON 1.1.8AR. In particular, it explains COCON 1.1.5BR.

COCON 1 Annex 2 3.4G contains the first part of the flow diagram. If this part of the flow diagram says that COCON does not apply, that means that the conduct in question is not within the scope of COCON. There is no need to go further in the flow diagram. 

After that, the flow diagram splits into 3 parts, depending on what kind of firm F is.

Flow diagram: What conduct COCON applies to: Questions applicable to all firms

COCON 1.3.2G to COCON 1.3.9G contain guidance on COCON 1.1.6R to COCON 1.1.7R as referred to in the flow diagram in COCON 1 Annex 2 3.4G.

Flow diagram: SMCR banking firms

Flow diagram: Firms other than SMCR banking firms or benchmark administrators

Flow diagram: Benchmark administrators

This section deals with the territorial scope of COCON. It is guidance on COCON 1.1.8BR to COCON 1.1.11DR. 

Flow diagram: Territorial scope

This Annex does not cover the effect described in COCON 1.1.11BG (effect on the territorial scope of COCON of the Regulated Activities Order) or COCON 1.1.12R (requirements of an EU measure passed or made before IP completion day).