Related provisions for COBS 1.1.3
61 - 80 of 117 items.
(1) 1This
chapter applies to a firm in
relation to designated investment business carried
on for a retail client3. (2) [deleted]3(3) But this chapter does not apply
to: (a) 3a firm in relation to its MiFID, equivalent third country or optional exemption business; or(b) 3subject to (3A),4 a firm to the extent that it is effecting contracts of insurance in relation to a life policy issued or to be issued by the firm as principal.(3A) COBS 8.1.4R and COBS 8.1.5R apply to a firm carrying
If a firm carries
on designated investment business,
other than advising on investments or advising on conversion or transfer of pension benefits, 2with or for a new retail client,
the firm must enter into a written
basic agreement, on paper or other durable
medium, with the client setting
out the essential rights and obligations of the firm and
the client.3
(1) A firm must,
in good time before a client3 is
bound by any agreement relating to designated
investment business3 or before the provision of those services, whichever
is the earlier, provide that client with:(a) the terms of any such agreement;
and(b) the information about the firm and its services relating to that agreement
or to those services required by COBS 6.1.4 R, including information on communications, conflicts
of interest and authorised status.(2) A firm must
provide
(1) A firm must
establish a record that includes the document or documents agreed between
it and a client which set out
the rights and obligations of the parties, and the other terms on which it
will provide services to the client.(2) The record must be maintained for3:(a) [deleted]3(b) unless (c) applies, at least3 the duration of the relationship
with the client; or(c) in the case of a record relating
to a pension transfer, pension conversion, 2pension opt-out or FSAVC,
indefinitely.3[Note:
When considering its approach to
client agreements, a firm should
be aware of other obligations in the Handbook which
may be relevant. These include the fair,
clear and not misleading rule,3 the rules on
disclosure of information to a client before
providing services,3 the rules on
distance communications (principally in COBS 2.2, 5, 6 and 13) and the provisions on record keeping (principally in SYSC 3, for insurers and managing agents, and SYSC 9, for other firms4.3
1This sourcebook applies to a firm with respect to the following activities carried on from an establishment maintained by it, or its appointed representative, in the United Kingdom:(1) [deleted]33(2) designated investment business;(3) long-term insurance business in relation to life policies;and activities connected with them.
3This sourcebook applies7 to a firm with respect to activities7 carried on in relation to deposits7 from an establishment maintained by it, or its appointed representative, in the United Kingdom only as follows:7
67Section / chapter |
Application in relation to deposits |
|
(1) |
Rules in this sourcebook which implement articles 24, 25, 26, 28 and 30 of MiFID (and related provisions of the MiFID Delegated Directive) (see COBS 1.1.1ADG). |
A MiFID investment firm, a third country investment firm and a MiFID optional exemption firm when selling, or advising a client in relation to, a structured deposit. |
(2) |
COBS 4.6 (Past, simulated past and future performance) |
Communication or approval of a financial promotion relating to a structured deposit that is addressed to, or disseminated in such a way that it is likely to be received by, a retail client. |
(3) |
COBS 4.7 (Direct offer financial promotions) |
Communication or approval of a financial promotion relating to a cash deposit ISA, cash-only lifetime ISA or cash deposit CTF that is addressed to, or disseminated in such a way that it is likely to be received by, a retail client. |
(4) |
COBS 4.10 (Systems and controls and approving and communicating financial promotions) |
|
(5) |
COBS 13 (Preparing product information) |
Producing a cash-deposit ISA, cash-only lifetime ISA or cash-deposit CTF. |
(6) |
COBS 14 (Providing product information to clients) |
Selling, personally recommending or arranging the sale of a cash-deposit ISA, cash-only lifetime ISA or cash-deposit CTF to a retail client. |
(7) |
COBS 15 (Cancellation) |
4COBS 4.4.3 R, COBS 5 (Distance communications), COBS 15.2 (The right to cancel), COBS 15.3 (Exercising a right to cancel), COBS 15.4 (Effects of cancellation) and COBS 15 Annex 1 (Exemptions from the right to cancel) apply to a firm with respect to the activity of issuing electronic money as set out in those provisions.
1A firm must, in relation to each with-profits fund it operates:(1) appoint:(a) a with-profits committee; or(b) a with-profits advisory arrangement (referred to in this section as an ‘advisory arrangement’), but only if appropriate, in the opinion of the firm'sgoverning body, having regard to the size, nature and complexity of the fund in question;(2) ensure that the with-profits committee or advisory arrangement operates in accordance with its terms of reference; and(3) make
(1) Ultimate responsibility for managing a with-profits fund rests with the firm through its governing body. The role of the with-profits committee or advisory arrangement is, in part, to act in an advisory capacity to inform the decision-making of a firm'sgoverning body. The with-profits committee or advisory arrangement also acts as a means by which the interests of with-profits policyholders are appropriately considered within a firm's governance structures. The with-profits
A firm must ensure that the terms of reference contain, as a minimum, terms having the following effect:(1) the role of the with-profits committee or advisory arrangement is, as relevant, to assess, report on, and provide clear advice and, where appropriate, recommendations to the firm'sgoverning body on:(a) the way in which each with-profits fund is managed by the firm and, if a PPFM is required, whether this is properly reflected in the PPFM;(b) if applicable, whether the firm
A firm must: (1) ensure that its governing body, in the context of its consideration of issues referred to in COBS 20.5.3R (1)(a) to (d) and (2)(b)(i) to (x):(a) obtains, as relevant, assessments, reports, advice and/or recommendations of the with-profits committee or advisory arrangement, if the governing body, the with-profits committee or advisory arrangement considers that significant issues concerning the interests of with-profits policyholders need to be considered by the
(1) COBS 20.5.5R (2) requires that a firm provides a with-profits committee or advisory arrangement with sufficient resources. A with-profits committee or advisory arrangement should be able to obtain external professional, including actuarial, advice, at the expense of the firm, if the with-profits committee or advisory arrangement considers the advice to be necessary to perform its role effectively. In a proprietary firm the with-profits committee or advisory arrangement should
(1) The FCA expects the governing body of the firm to decide whether a member of the with-profits committee or a person (other than a non-executive director) carrying out the advisory arrangement is independent. The FCA expects a firm'sgoverning body to adopt the following approach and have regard to the following factors when making this assessment:(a) the governing body should determine whether the person is independent in character and judgment and whether there are relationships
In complying with the rule on systems and controls in relation to compliance, financial crime and money laundering (SYSC 3.2.6 R), a firm should maintain governance arrangements designed to ensure that it complies with, maintains and records, any applicable PPFM. These arrangements should:(1) be appropriate to the scale, nature and complexity of the firm'swith-profits business; and(2) include the approval of the firm'sPPFM by its governing body.
(1) A firm must ensure that a communication or a financial promotion is fair, clear and not misleading.(2) This rule applies in relation to:(a) a communication by the firm to a customer6 in relation to designated investment business which is not MiFID, equivalent third country or optional exemption business,7 other than a third party prospectus;(aa) 6a communication to an eligible counterparty that is in relation to:8(i) MiFID or equivalent third country business other than a
(1) 1The fair, clear and not misleading rule applies in a way that is appropriate and proportionate taking into account the means of communication,6 the information the communication is intended to convey and the nature of the client and of its business, if any6. So a communication addressed to a professional client or an eligible counterparty6 may not need to include the same information, or be presented in the same way, as a communication addressed to a retail client.(2) COBS
A firm should ensure that a financial promotion:(1) for a product or service that places a client's capital at risk makes this clear;(2) that quotes a yield figure gives a balanced impression of both the short and long term prospects for the investment;(3) that promotes an investment or service whose charging structure is complex, or in relation to which the firm will receive more than one element of remuneration, includes the information necessary to ensure that it is fair, clear
2A communication or a financial promotion should not describe a feature of a product or service as “guaranteed”, “protected” or “secure”, or use a similar term unless:24(1) that term is capable of being a fair, clear and not misleading description of it; and(2) the firm communicates all of the information necessary, and presents that information with sufficient clarity and prominence, to make the use of that term fair, clear and not misleading.45
For example:(1) the Child Trust Fund Regulations contain provisions relevant to cancellation rights; in particular they provide that any uninvested sums held in connection with a CTF should be held in a designated bank account; and the effect of conditions 4(a) and (b) in regulation 5 of the Child Trust Fund Regulations (applicable to non-HMRC allocated CTF) is that a CTF opened by way of distance contract has a cancellable management agreement in all cases and the CTF cannot
When a consumer cancels a distance contract under this chapter, his notice may also operate to cancel any attached contract which is also a distance financial services contract unless the consumer gives notice that cancellation of the main contract is not to operate to cancel the attached contract (see regulation 12 of the Distance Marketing Regulations). Where relevant, this should be disclosed to the consumer along with other information on cancellation.
This chapter does not act to cancel distance contracts entered into by an appointed representative or where applicable, by a tied agent,1 as principal such as a distance contract to provide advisory services, but the Distance Marketing Regulations (regulations 9 to 13, see regulation 4(3)) may have this effect.
Where a life policy or unit bought on opening or transferring an ISA is cancellable, the right to cancel, or substitute right to withdraw, applies to the entire arrangement. For example, a maxi-ISA comprising a life policy in the stocks and shares component and a cash component would be cancellable as a whole with a cancellation period of 30 calendar days. However, a firm is free to give the consumer the option of cancelling individual components separately with the same cancellation
A key features document must:(1) include enough information about the nature and complexity of the product, how it works, any limitations or minimum standards that apply and the material benefits and risks of buying or investing for a retail client to be able to make an informed decision about whether to proceed; 7(2) explain:(a) the arrangements for handling complaints about the product;(b) that compensation might be available from the FSCS if the firm cannot meet its liabilities
Table
A key features document for a non-PRIIP packaged product8 must: |
||
(1) |
Include the title: ‘key features of the [name of product]’; |
|
(2) |
describe the product in the order of the following headings, and by giving the following information under those headings: |
|
Heading |
Information to be given |
|
‘Its aims’ |
A brief description of the product’s aims |
|
‘Your commitment’ or ‘Your investment’ |
What a retail client is committing to or investing in and any consequences of failing to maintain the commitment or investment |
|
‘Risks’ |
The material risks associated with the product, including a description of the factors that may have an adverse effect on performance or are material to the decision to invest |
|
‘Questions and Answers’ |
(in the form of questions and answers) the principle terms of the product, what it will do for a retail client and any other information necessary to enable a retail client to make an informed decision. |
|
5[Note: in respect of ‘Risks’, article 185(4) of the Solvency II Directive] |
||
A service should be considered to be provided at the initiative of a client (see COBS 10.4.1 R (1)(a)1) unless the client demands it in response to a personalised communication from or on behalf of the firm to that particular client which contains an invitation or is intended to influence the client in respect of a specific financial instrument or specific transaction.2
A service can be considered to be provided at the initiative of a client notwithstanding that the client demands it on the basis of any communication containing a promotion or offer of investments2 made by any means that by its very nature is general and addressed to the public or a larger group or category of clients.2
(1) Communications to the world at large, such as those in newspapers or on billboards, are likely to be by their very nature general and therefore not personalised communications.(2) Communications addressed to a client (such as, for example, an email,2 telephone call or2 letter), may or may not be personalised depending on the content.(3) A communication is not personalised solely because it contains the name and address of the client or because a mailing list has been filtered.(4)
This section applies to a firm in relation to the communication of 3a financial promotion that is not in writing, but it does not apply:(1) to the extent that the financial promotion is an excluded communication;(2) if the financial promotion is image advertising;(3) if the financial promotion is a non-retail communication;1(4) [deleted]22(5) to the extent that the financial promotion relates to a pure protection contract that is a long-term care insurance contract.1
A firm must not make a cold call unless:(1) the recipient has an established existing client relationship with the firm and the relationship is such that the recipient envisages receiving cold calls; or(2) the cold call relates to a generally marketable packaged product which is not:(a) a higher volatility fund; or(b) a life policy with a link (including a potential link) to a higher volatility fund; or(3) the cold call relates to a controlled activity to be carried on by an authorised
A firm must not communicate a solicited or unsolicited financial promotion that is not in writing, to a client3 outside the firm's premises, unless the personcommunicating it:(1) only does so at an appropriate time of the day;(2) identifies himself and the firm he represents at the outset and makes clear the purpose of the communication;(3) clarifies if the client would like to continue with or terminate the communication, and terminates the communication at any time that the
This chapter applies to a firm which arranges or deals in relation to a non-readily realisable security,2derivative or a warrant with or for a retail client, other than in the course of MiFID or equivalent third country business,3 or facilitates a retail client becoming a lender under a P2P agreement4 and the firm is aware, or ought reasonably to be aware, that the application or order is in response to a direct offer financial promotion.
If a consumer exercises his right to cancel he must, before the expiry of the relevant deadline, notify this following the practical instructions given to him. The deadline shall be deemed to have been observed if the notification, if in a durable medium available and accessible to the recipient, is dispatched before the deadline expires. [Note: article 6 (6) of the Distance Marketing Directive]
The firm should accept any indication that the consumer wishes to cancel as long as it satisfies the conditions for notification. In the event of any dispute, unless there is clear written evidence to the contrary, the firm should treat the date cited by the consumer as the date when the notification was dispatched.
The firm must make adequate records concerning the exercise of a right to cancel or withdraw and retain them:(1) indefinitely in relation to a pension transfer2, pension opt-out or FSAVC;(2) for at least five years in relation to a life policy, pension contract, personal pension scheme,1stakeholder pension scheme or lifetime ISA1; and(3) for at least three years in any other case.
(1) 1A firm must not enter into an agreement with a client under which a charge is, or may become, payable for an optional additional product unless the client has actively elected to obtain that specific product. (2) A firm must not impose a charge on a client for an optional additional product under an agreement entered into on or after 1 April 2016 unless the client has actively elected to obtain that specific product before becoming bound to pay the charge.(3) A firm must
(1) 1The restrictions in this section apply in relation to the following investments:(a) a contingent convertible instrument; or(b) a security issued by a CoCo fund; or(c) a beneficial interest in either of (a) or (b).(2) A firm must not:(a) sell an investment to a retail client in the EEA; or(b) communicate or approve an invitation or inducement to participate in, acquire or underwrite an investment where that invitation or inducement is addressed to or disseminated in such a
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 Regulation3. |
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. |
|
(1) For the purposes of any assessments or certifications required by the exemptions in COBS 22.3.2R, any references in COBS 4.12 provisions to non-mainstream pooled investments must be read as though they are references to contingent convertible instruments or CoCo funds, as relevant.(2) If the firm is relying on the high net worth investor, the sophisticated investor or the self-certified sophisticated investor exemption to comply with this section, the statement the investor
A firm wishing to certify a retail client as a sophisticated investor for the purposes of this section should note that, in the FCA’s view, it is likely that the only retail clients with the requisite sophistication in relation to contingent convertible instruments or CoCo funds are those with significant experience with investment in multiple types of complex financial instruments and who have sufficient understanding of how credit institutions are run, including risks to the
A firm which carries on an activity which is subject to this section must comply with the following record-keeping requirements:(1) the person allocated the compliance oversight function in the firm must make a record at or near the time of the activity certifying it complies with the restrictions set out in this section;(2) the making of the record required in (1) may be delegated to one or more employees of the firm who report to, and are supervised by, the person allocated
1 A key features illustration;1158(1) must include appropriate charges information;11(2) must include information about any interest that will be paid to clients on money held within a personal pension scheme bank account; and1166(3) if it is prepared for a non-PRIIP packaged product which is not a financial instrument:1166(a) must include a standardised deterministic projection; 11(b) the projection and charges information must be consistent with each other so that:11(i) the
When the rules in this chapter require a key features illustration to be prepared, it must not take the form of a generic key features illustration:33(1) unless 3there are reasonable grounds for believing that it3 will be sufficient to enable a retail client to make an informed decision about whether to invest; or3(2) if it is part of a3direct offer financial promotion which contains a personal recommendation; or33(3) if a personal pension scheme or a stakeholder pension scheme
There is no requirement under COBS 13.4.1 R5 to include a projection in a key features illustration:(1) for a single premiumlife policy bought as a pure investment product, a product with benefits that do not depend on future investment returns or any other product if it is reasonable to believe that a retail client will not need one to be able to make an informed decision about whether to invest; or(2) if the product is a life policy that will be held in a CTF or sold with basic
Although there may be no obligation to include a projection in a key features illustration, where a firm chooses to include one, the projection should:9(1) 9Comply with the requirements in this section unless the projection relates to an investment that is a financial instrument. (2) 9Where the projection relates to a financial instrument, the firm should comply with either: (a) 9the requirements in article 44(6) of the MiFID Org Regulation (see COBS 4.5A.14EU) where the firm
(1) 1A firm must act honestly, fairly and professionally in accordance with the best interests of its client (the client's best interests rule).(2) This rule applies6:(a) in relation to designated investment business carried on6 for a retail client; 7(b) in relation to MiFID, equivalent third country or optional exemption business5, for any6client; and7(c) in relation to insurance distribution, for any client.7(3) For a management company, this rule applies in relation to any
(1) In order to comply with the client's best interests rule, a firm should not, in any communication to a retail client relating to designated investment business:(a) seek to exclude or restrict; or(b) rely on any exclusion or restriction of;any duty or liability it may have to a client other than under the regulatory system, unless it is honest, fair and professional for it to do so.(2) The general law, including the Unfair Terms Regulations (for contracts entered into before
3A full-scope UK AIFM and an incoming EEA AIFM branch must, for all AIFs it manages: (1) act honestly, fairly and with due skill care and diligence in conducting their activities;(2) act in the best interests of the AIF it manages or the investors of the AIF it manages and the integrity of the market;(3) treat all investors fairly; and(4) not allow any investor in an AIF to obtain preferential treatment, unless such preferential treatment is disclosed in the relevant AIF'sinstrument
Where article 20(3) of the Market Abuse Regulation requires a disclosure of the proportions of all investment recommendations published that are “buy”, “hold”, “sell” or equivalent terms, the FCA considers it important for these equivalent terms to be consistent and meaningful to the recipients in terms of the course of actions being recommended, particularly for non-equity material.22
This chapter relates to parts of the Handbook whose application depends on whether a person is a client, a retail client, a professional client or an eligible counterparty. However, it does not apply to the extent that another part of the Handbook provides for a different approach to client categorisation. For example, a separate approach to client categorisation is set out in the definition of a retail client for a firm that gives basic advice2.
The sections in this chapter on general notifications (COBS 3.3) and policies, procedures and records (COBS 3.8) do not apply in relation to a firm that is neither:(1) conducting designated investment business; nor(2) in the case of MiFID or equivalent third country business providing an ancillary service that does not constitute designated investment business.
If a firm conducts business for a client involving both:(1) MiFID or equivalent third country business; and(2) other regulated activities subject to this chapter;it must categorise that client for such business in accordance with the provisions in this chapter that apply to MiFID or equivalent third country business, including those provisions applied to the equivalent business of a third country investment firm4 as a result of COBS 3.1.2AR3.
(1) For example, the requirement concerning mixed business will apply if a MiFID investment firm or third country investment firm3 advises a client on whether to invest in a scheme or a life policy. This is because the former is within the scope of MiFID and the latter is not. In such a case, the MiFIDclient categorisation requirements prevail.(2) The requirement does not apply where the MiFID or equivalent third country business is provided separately from the other regulated
(1) [deleted]51(2) This section applies in relation to5designated investment business (6other than MiFID, equivalent third country or optional exemption business or insurance distribution activities)6, carried on for a retail client: 5(a) in relation to a derivative, a warrant, a non-readily realisable security, a P2P agreement,4 or stock lending activity, but as regards the matters in COBS 2.2.1R (1)(b) only; and (b) in relation to a retail investment product2, but as regards
(1) A firm must provide appropriate information in a comprehensible form to a client about:(a) the firm and its services;(b) designated investments and proposed investment strategies; including appropriate guidance on and warnings of the risks associated with investments in those designated investments or in respect of particular investment strategies;(c) execution venues; and(d) costs and associated charges;so that the client is reasonably able to understand the nature and risks
3A firm, other than a venture capital firm, which is managing investments for a professional client that is not a natural person must disclose clearly on its website, or if it does not have a website in another accessible form:(1) the nature of its commitment to the Financial Reporting Council’s Stewardship Code; or(2) where it does not commit to the Code, its alternative investment strategy.
(1) A transaction may be unsuitable for a client because of the risks of the designated investments involved, the type of transaction, the characteristics of the order or the frequency of the trading.(2) In the case of managing investments, a transaction might also be unsuitable if it would result in an unsuitable portfolio.[deleted]5
(1) A series of transactions that are each suitable when viewed in isolation may be unsuitable if the recommendation or the decisions to trade are made with a frequency that is not in the best interests of the client.(2) A firm should have regard to the client's agreed investment strategy in determining the frequency of transactions. This would include, for example, the need to switch a client within or between packaged products.[deleted]5
When a firm is making a personal recommendation to a retail client about income withdrawals, uncrystallised funds pension lump sum payments3 or purchase of short-term annuities, it should consider all the relevant circumstances including:(1) the client's investment objectives, need for tax-free cash and state of health;(2) current and future income requirements, existing pension assets and the relative importance of the plan, given the client’s financial circumstances;(3) the
When considering the suitability of a particular investment product which is linked directly or indirectly to any form of loan, mortgage or home reversion plan, a firm should take account of the suitability of the overall transaction. The firm should also have regard to any applicable suitability rules in MCOB.
(1) Firms should note that restrictions and specific requirements apply to the retail distribution of certain investments:212(a) non-mainstream pooled investments are subject to a restriction on financial promotions (see section 238 of the Act and COBS 4.12);(b) non-readily realisable securities are subject to a restriction on direct offer financial promotions (see COBS 4.7);(c) contingent convertible instruments and CoCo funds are subject to a restriction on sales and on promotions
When a firm prepares a suitability report it must:(1) (in the case of a personal pension scheme), explain why it considers the personal pension scheme to be at least as suitable as a stakeholder pension scheme; (2) (in the case of a personal pension scheme, stakeholder pension scheme or2FSAVC) explain why it considers the personal pension scheme, stakeholder pension scheme or2FSAVC to be at least as suitable as any facility to make additional contributions to an occupational pension
When a firm promotes a personal pension scheme, including a group personal pension scheme, to a group of employees it must:(1) be satisfied on reasonable grounds that the scheme is likely to be at least as suitable for the majority of the employees as a stakeholder pension scheme; and(2) record why it thinks the promotion is justified.
(1) 4An operator should ensure that it is aware of, and acts fully in accordance with, any attachment or earmarking orders made in respect of any members of that scheme by a court.(2) In particular, an operator should be mindful of its obligations under an attachment order to give notices to other parties, including transferee operators and relevant former spouses, where relevant events occur, such as transfers and significant reductions in benefits.(3) A firm, when advising a
(1) The section on the process for reattribution (COBS 20.2.42 R to COBS 20.2.52 G):(a) applies to a firm that is proposing to make a reattribution of its inherited estate;(b) but not if, and to the extent that, it would require the firm to breach, or would prevent the firm from complying with, an order made by a court of competent jurisdiction.(2) If a firm proposes to seek an order from a court of competent jurisdiction that would allow or require it to act in a way that is
For an EEA insurer:(1) 4(a) the rules and guidance on the with-profits fund (COBS 20.1A), on treating with-profits policyholders fairly (COBS 20.2.1 G to COBS 20.2.41 G and COBS 20.2.53 R to COBS 20.2.60 G), and the governance provisions in COBS 20.5. apply only in so far as responsibility for the matter in question has not been reserved to the firm'sHome State regulator by an EU instrument;4notwithstanding the above: (b) COBS 20.2.26A R (financial penalties and the with-profits