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You are viewing the version of the document as on 2023-11-28.

client

  1. (A) in the PRA Handbook:151
  2. (1) (except 38in PROF47 and except 97 in relation to a41 home finance transaction 41 52 14 17 52) 52has the meaning given in COBS 3.2, that is (in summary and without prejudice to the detailed effect of COBS 3.2) a person to whom a firm provides, intends to provide or has provided a service in the course of carrying on a regulated activity, or in the case of MiFID or equivalent third country business56, an ancillary service;52
    1. (a) every client is a customer or67 an eligible counterparty67;
    2. (b) "client" includes:
      1. (i) a potential client;
      2. (ii) a client of an appointed representative of a firm with or for whom the appointed representative acts or intends to act in the course of business for which the firm has accepted responsibility under section 39 of the Act (Exemption of appointed representatives) or, where applicable, a client of a tied agent of a firm67;
      3. (iii) a148 fund 148 even if it does not have separate legal personality;
      4. (iiiA) any person to whom collective portfolio management services are provided, irrespective of whether or not it is authorised;118
      5. (iv) if a person ("C1"), with or for whom the firm is conducting or intends to conduct designated investment business, is acting as agent for another person ("C2"), either C1 or C2 in accordance with67 the rule on agent as client COBS 2.4.3 R;
      6. (v) for a firm that is establishing, operating or winding up a personal pension scheme, a member or beneficiary of that scheme;39
    3. (c) "client" does not include:
      1. (i) a trust beneficiary not in (b)(vi)21439;
      2. (ii) a corporate finance contact;
      3. (iii) a venture capital contact.
  3. (2) [deleted]38
    1. (3) (in PROF) (as defined in section 328(8) of the Act (Directions in relation to the general prohibition)) (in relation to members of a profession providing financial services under Part XX of the Act (Provision of Financial Services by Members of the Professions)):
      1. (a) a person who uses, has used or may be contemplating using, any of the services provided by the member of a profession in the course of carrying on exempt regulated activities (including, where the member of the profession is acting in his capacity as a trustee, a person who is, has been or may be a beneficiary of the trust); or
      2. (b) a person who has rights or interests which are derived from, or otherwise attributable to, the use of any such services by other persons; or
      3. (c) a person who has rights or interests which may be adversely affected by the use of any such services by persons acting on his behalf or in a fiduciary capacity in relation to him.3
    2. (4) (in relation to a regulated mortgage contract, except in38 PROF 52) the individual or trustee who is the borrower or potential borrower under that contract.1417
    3. 41(5) (in relation to a home purchase plan, except in PROF) the home purchaser or potential home purchaser.
    4. 41(6) (in relation to a home reversion plan, except in PROF):
      1. (a) the reversion occupier or potential reversion occupier; or
      2. (b) an individual who is an unauthorised reversion provider and who is not, or would not, be required to have permission to enter into a home reversion plan.
    5. 91(7) (in relation to a dormant account transferred to a dormant account fund operator) a person entitled to the balance in the dormant account held with a bank or building society which was transferred to a dormant account fund operator.
    6. 98(8) (in relation to a regulated sale and rent back agreement, except in PROF):
      1. (a) the individual or trustee who is the SRB agreement seller or potential SRB agreement seller; or
      2. (b) an individual who is an unauthorised SRB agreement provider or potential unauthorised SRB agreement provider and who does not have, or would not be required to have, permission to enter into a regulated sale and rent back agreement.
    7. (B) in the FCA Handbook:151
    8. (1) (except in PROF, in MIFIDPRU 5,256 in relation to a credit-related regulated activity,219 in relation to regulated funeral plan activity,254 in relation to a home finance transaction and in relation to insurance risk transformation and activities directly arising from insurance risk transformation219) has the meaning given in COBS 3.2, that is (in summary and without prejudice to the detailed effect of COBS 3.2) a person to whom a firm provides, intends to provide or has provided a service in the course of carrying on a regulated activity, or in the case of MiFID or equivalent third country business, an ancillary service:
      1. (a) every client is a customer or an eligible counterparty;
      2. (b) "client" includes:
        1. (i) a potential client;
        2. (ii) a client of an appointed representative of a firm with or for whom the appointed representative acts or intends to act in the course of business for which the firm has accepted responsibility under section 39 of the Act (Exemption of appointed representatives) or, where applicable, a client of a tied agent of a firm;
        3. (iii) a fund even if it does not have separate legal personality;
        4. (iv) any person to whom collective portfolio management services are provided, irrespective of whether or not it is authorised;
        5. (v) if a person ("C1"), with or for whom the firm is conducting or intends to conduct designated investment business, is acting as agent for another person ("C2"), either C1 or C2 in accordance with the rule on agent as client COBS 2.4.3 R;
        6. (vi) for a firm that is establishing, operating or winding up a personal pension scheme, a member or beneficiary of that scheme;
      3. (c) "client" does not include:
        1. (i) a trust beneficiary not in (b)(v);
        2. (ii) a corporate finance contact;
        3. (iii) a venture capital contact.
    9. (1A) in relation to payment services or electronic money in addition to (1), includes a person to whom a payment service provider or electronic money issuer provides, intends to provide or has provided:231
      1. (a) a payment service;231
      2. (b) a service in the course of issuing electronic money; or231
      3. (c) a service connected to a service in (a) or (b).231
    10. (2) (in PROF) (as defined in section 328(8) of the Act (Directions in relation to the general prohibition)) (in relation to members of a profession providing financial services under Part XX of the Act (Provision of Financial Services by Members of the Professions)):
      1. (a) a person who uses, has used or may be contemplating using, any of the services provided by the member of a profession in the course of carrying on exempt regulated activities (including, where the member of the profession is acting in his capacity as a trustee, a person who is, has been or may be a beneficiary of the trust); or
      2. (b) a person who has rights or interests which are derived from, or otherwise attributable to, the use of any such services by other persons; or
      3. (c) a person who has rights or interests which may be adversely affected by the use of any such services by persons acting on his behalf or in a fiduciary capacity in relation to him; and157
      4. 157(d) in relation to a person ("A") carrying on a regulated activity of the kind specified by article 39F (Debt-collecting) or 39G (Debt administration) of the Regulated Activities Order, includes:
        1. (i) the borrower under the credit agreement or the hirer under the consumer hire agreement;
        2. (ii) someone who has been the borrower or hirer under the agreement;
        3. (iii) a person who is treated by A as a person falling within (i) or (ii);
        4. (iv) any person providing a guarantee or indemnity under the agreement; and
        5. (v) a person to whom the rights and duties of a person falling within (iv) have passed by assignment or operation of law; and
      5. 157(e) in relation to a person ("A") carrying on a regulated activity of the kind specified by article 60B (regulated credit agreements) or article 60N (regulated consumer hire agreements) of the Regulated Activities Order, includes a person who is treated by A as a person who is or has been:
        1. (i) the borrower under a regulated credit agreement or the hirer under a regulated consumer hire agreement;
        2. (ii) a person providing a guarantee or indemnity under the agreement; or
        3. (iii) a person to whom the rights and duties of a person within (ii) have passed by assignment or operation of law; and
      6. 157(f) includes an individual who is, may be, has been or may have been the subject of the information referred to in article 89A (Providing credit information services) of the Regulated Activities Order; and
      7. 157(g) includes an individual who is, may be, has been or may have been the subject of information furnished in the course of a person carrying on an activity of the kind specified by article 89B (Providing credit references) of the Regulated Activities Order.
    11. (2A) (in MIFIDPRU 5) a counterparty of the investment firm.256
    12. (3) in relation to a regulated mortgage contract, except in PROF) the individual or trustee who is the borrower or potential borrower under that contract.
    13. (4) in relation to a home purchase plan, except in PROF) the home purchaser or potential home purchaser.
    14. (5) (in relation to a home reversion plan, except in PROF):
      1. (a) the reversion occupier or potential reversion occupier; or
      2. (b) an individual who is an unauthorised reversion provider and who is not, or would not, be required to have permission to enter into a home reversion plan.
    15. (6) (in relation to a dormant account transferred to a dormant account fund operator) a person entitled to the balance in the dormant account held with a bank or building society which was transferred to a dormant account fund operator.
    16. (7) (in relation to a regulated sale and rent back agreement, except in PROF):
      1. (a) the individual or trustee who is the SRB agreement seller or potential SRB agreement seller; or
      2. (b) an individual who is an unauthorised SRB agreement provider or potential unauthorised SRB agreement provider and who does not have, or would not be required to have, permission to enter into a regulated sale and rent back agreement.
    17. (8) (in relation to a credit-related regulated activity) a customer.
    18. (9) (in relation to insurance risk transformation and activities directly arising from insurance risk transformation) has the meaning given in COBS 3.2 as modified by COBS 18.6A.3R(2).219
    19. (10) (in relation to regulated claims management activity and ancillary activity) a customer.228
    20. (11) (in relation to regulated funeral plan activity) a customer.254
    21. 275(12) (in ESG) in addition to (1), includes:
      1. (i) a unitholder or potential unitholder in a scheme; and
      2. (ii) to the extent not within (i), an investor or potential investor in an AIF.