Related provisions for COBS 3.1.5
The provisions of COBS in the table do not apply to a trustee firm to which this section applies:
COBS |
Description |
26.1A |
Adviser charging and remuneration |
26.1B |
Retail investment product provider requirements relating to adviser charging and remuneration |
26.2A |
Describing advice services |
6.4 |
Disclosure of charges, remuneration and commission |
9.4 |
Suitability reports |
9.6 |
Special rules for providing basic advice on a stakeholder product |
16.3.9 |
Guidance on contingent liability transaction |
16.5 |
Quotations for surrender values |
16.6 |
Life insurance contracts - communications to clients |
16 Annex 1 R (1) 14 |
Information to be provided in accordance with COBS 16.2.1 R and 16.3 |
The provisions of COBS in the table are unlikely to be relevant in relation to a trustee firm to which this section applies:
COBS |
Description |
5 |
Distance communications |
13 |
Preparing product information |
14.2 |
Providing product information |
15 |
Cancellation |
17 |
Claims handling for long-term care insurance |
18.2 |
Energy market activity and oil market activity |
18.3 |
Corporate finance business |
18.4 |
Stock lending activity |
19 |
Pensions - supplementary provisions |
20 |
With-profits |
1Each of the exemptions listed below applies only if the retail client is of the type described for the exemption and provided any additional conditions for the exemption are met.
Title |
Type of retail client |
Additional conditions |
(a) An individual who meets the requirements set out in COBS 4.12.6R; or (b) an individual in an EEA State other than the UK who meets requirements which are broadly equivalent to those set out in COBS 4.12.6R; or (c) a person (or persons) legally empowered to make investment decisions on behalf of an individual who meets the earnings or net asset requirements in (a) or (b) above |
The firm must consider that the investment is likely to be suitable for that individual, based on a preliminary assessment of that individual’s profile and objectives (see COBS 4.12.5G(2)). |
|
(a) An individual who meets the requirements set out in COBS 4.12.7R; or (b) an individual in an EEA State other than the UK who meets requirements which are broadly equivalent to those set out in COBS 4.12.7R; or (c) an individual who meets the requirements for either (a) or (b) above and who is legally empowered (solely or jointly with others) to make investment decisions on behalf of another person who is the firm's client. |
Not applicable. |
|
(a) An individual who meets the requirements set out in COBS 4.12.8R; or (b) an individual in an EEA State other than the UK who meets requirements which are broadly equivalent to those set out in COBS 4.12.8R; or (c) an individual who meets the requirements for either (a) or (b) above and who is legally empowered (solely or jointly with others) to make investment decisions on behalf of another person who is the firm's client. |
The firm must consider that the investment is likely to be suitable for that individual, based on a preliminary assessment of that individual’s profile and objectives (see COBS 4.12.5G(2)). |
|
Solicited advice |
Any retail client. |
The restrictions do not apply provided all of the following requirements are met: (a) there is no invitation or inducement to participate in, acquire or underwrite the investment other than a personal recommendation on the investment; (b) the personal recommendation is made following a specific request by that client for advice on the investment; and (c) the client has not previously received any other communication (whether or not a financial promotion) from the firm or from a person connected to the firm which is intended to influence the client in relation to the investment. (See Note 1) |
MiFID or equivalent third country business other than financial promotions |
Any retail client. |
COBS 22.3.1R(2)(a) does not apply to MiFID or equivalent third country business (see COBS 9.3.5G). |
Prospectus |
Any retail client. |
The restrictions do not apply to the distribution of a prospectus required under the Prospectus Directive. |
Issuers |
Any retail client |
To the extent that the firm is acting as issuer of a contingent convertible instrument, the restrictions only apply to the original issuance of the contingent convertible instrument and not to subsequent trading in the secondary market. |
Indirect investment |
Any retail client |
The restrictions do not apply in relation to a beneficial interest in a contingent convertible instrument acquired through participation in a regulated collective investment scheme, investment in a non-mainstream pooled investment (provided it is not a CoCo fund), or membership of an occupational pension scheme. |
Note 1 |
A person is connected with a firm if it acts as an introducer or appointed representative for that firm or if it is any other person, regardless of authorisation status, who has a relevant business relationship with the firm. |
|
Note 2 |
See COBS 2.4 for rules and guidance on agent as client and reliance on others. |