Related provisions for COBS 13.5.4

21 - 40 of 117 items.
Results filter

Search Term(s)

Filter by Modules

Filter by Documents

Filter by Keywords

Effective Period

Similar To

To access the FCA Handbook Archive choose a date between 1 January 2001 and 31 December 2004 (From field only).

COBS 6.1.1RRP
(1) 1This section applies to a firm that carries on designated investment business, other than MiFID, equivalent third country or optional exemption business or insurance distribution activities7,6 for 6 a retail client.(2) [deleted]6
COBS 6.1.2RRP
If a firm provides basic advice on stakeholder products in accordance with the basic advicerules, this section does not apply to that service.
COBS 6.1.4RRP
A firm must provide a client6 with the following general information, if relevant:(1) the name and address of the firm, and the contact details necessary to enable a client to communicate effectively with the firm;(2) [deleted]6(3) the methods of communication to be used between the firm and the client including, where relevant, those for the sending and reception of orders;(4) a statement of the fact that the firm is authorised and the name of the competent authority that has
COBS 6.1.6RRP
(1) A firm that manages investments for a client must establish an appropriate method of evaluation and comparison such as a meaningful benchmark, based on the investment objectives of the client and the types of designated investments included in the client portfolio, so as to enable the client to assess the firm's performance.(2) If a firm proposes to manage investments for a client6, the firm must provide the client with such of the following information as is applicable:(a)
COBS 6.1.7RRP
(1) A firm that holds designated investments or client money for a client6 subject to the custody chapter or the client money chapter must provide that client with the following information:444(a) if applicable,(i) that the designated investments or client money of that client may be held by a third party on behalf of the firm;(ii) the responsibility of the firm under the applicable national law for any acts or omissions of the third party; and(iii) the consequences for the client
COBS 6.1.9RRP
A firm must provide a client6 with information on costs and associated charges including, if applicable:(1) the total price to be paid by the client in connection with the designated investment or the designated investment business6,including all related fees, commissions, charges and expenses, and all taxes payable via the firm or, if an exact price cannot be indicated, the basis for the calculation of the total price so that the client can verify it. The commissions charged
COBS 6.1.11RRP
(1) A firm must provide a client with the information required by this section in good time before the provision of designated investment business6 unless otherwise provided by this rule.(2) A firm may instead provide that information immediately after starting to provide designated investment business6 if:(a) the firm was unable to comply with (1) because, at the request of the client, the agreement was concluded using a means of distance communication2 which prevented the firm
COBS 6.1.13RRP
Except where expressly provided, a firm must provide the information required by this section in a durable medium or via a website (where it does not constitute a durable medium) where the website conditions are satisfied.6
COBS 6.1.14RRP
(1) A firm must notify a client in good time about any material change to the information provided under this section which is relevant to a service that the firm is providing to that client.(2) A firm must provide this notification in a durable medium if the information to which it relates was given in a durable medium.6
COBS 6.1.15GRP
(1) A firm need not treat each of several transactions in respect of the same type of financial instrument as a new or different service and so does not need to comply with the disclosure rules in this chapter in relation to each transaction.6(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 disclosed in respect of a previous transaction.
COBS 6.1.16RRP
(1) A firm6must make available to a client, who has used or intends to use the firm’s6 services, information necessary for the identification of the compensation scheme or any other investor-compensation scheme of which the firm is a member (including, if relevant, membership through a branch) or any alternative arrangement provided for in accordance with the Investor Compensation Directive.(2) The information under (1) must include the amount and scope of the cover offered by
COBS 6.1E.1RRP
(1) 1A2platform service provider must clearly disclose the total platform charge to the retail client32 in a durable medium in good time before the provision of designated investment business.22(2) In the event that it is not possible to make the disclosure in (1) in good time before the provision of designated investment business, the disclosure must be made as soon as practicable thereafter.
COBS 6.1E.2GRP
A2platform service provider should pay due regard to its obligations under Principle 6 (Customers’ interests), Principle 7 (Communications with clients) and the client's best interests rule, and ensure that it presents retail investment products without bias.2232
COBS 6.1E.3GRP
2A platform service provider should pay due regard to its obligations under Principle 6 (Customers’ interests) and the client's best interests rule and not vary its platform charges inappropriately according to provider or, for substitutable and competing retail investment products, the type of retail investment product.
COBS 6.1E.4RRP
2Except as specified in COBS 6.1E.6 R and COBS 6.1E.7 R, a platform service provider must:(1) only be remunerated for its platform service (and any other related services it provides), by platform charges; and(2) ensure that none of its associates accepts any remuneration in respect of those services.
COBS 6.1E.5GRP
2Examples of remuneration that should not be accepted by a platform service provider or its associates include (but are not limited to):(1) a share of an annual management charge; and(2) any payment (other than a product charge or a platform charge) made to a platform service provider in its capacity as a retail investment product provider where the relevant retail investment product is distributed to retail clients by its platform service.
COBS 6.1E.6RRP
2A platform service provider or its associates may solicit and accept payments from:(1) a firm, other than a retail investment product provider, which is in the business of making personal recommendations to retail clients in relation to retail investment products; and/or(2) a firm, other than a retail investment product provider, which is in the business of arranging or dealingretail investment products for retail clients.
COBS 6.1E.7RRP
2Other than in COBS 6.1E.6 R, a3platform service provider or its associates may solicit and accept payments from any3firm, including a retail investment product provider,3 which are only for:(1) pricing error corrections;(2) administering corporate actions;(3) research carried out by the platform service provider and management information; and(4) advertising;provided that:(5) the services are available to firms at a price which does not vary inappropriately according to firm;(6)
COBS 6.1E.8RRP
2A platform service provider must not arrange for a retail client to buy a retail investment product if:(1) the product’s charges are presented in a way that offsets or may appear to offset any adviser charges or platform charges that are payable by that retail client; or(2) the platform service provider's charges are presented in a way that offsets or may appear to offset any product charges or adviser charges that are payable by the retail client; or(3) the product’s charges
COBS 6.1E.9RRP
2A firm must not use a platform service as part of a personal recommendation to a retail client in relation to a retail investment product unless it has satisfied itself that the platform service provider, and its associates, only receive remuneration for business carried on in the UK which is permitted by the rules in this section.
COBS 6.1E.10RRP
2COBS 6.1E.4 R does not prevent a platform service provider receiving a share of an annual management charge from an authorised fund manager if the platform service provider passes that share on to the retail client in the form of:(1) additional units; or(2) cash, provided that it does not offset or appear to offset any adviser charges or platform charges.
COBS 6.1E.11GRP
2Examples of a cash share of an annual management charge that would not offset or appear to offset any adviser charges or platform charges are:(1) where the retail client has redeemed his retail investment product; or(2) where the value of the payment made to the retail client in each month does not exceed £1 for each fund.
COBS 6.1E.12GRP
2If a platform service provider passes a share of an annual management charge on to a retail client by way of additional units or cash, it should pay due regard to its obligations under Principle 7 (Communications with clients).
COBS 14.3.1RRP
This section applies to a firm in relation to:(1) [deleted]8(2) any of8 the following regulated activities when carried on for a retail client:(a) making a personal recommendation about a designated investment6;5 or(b) managing investments that are designated investments (other than a P2P agreement);5 or(c) arranging (bringing about) or executing a deal in a warrant, non-readily realisable security4 or derivative; or(d) engaging in stock lending activity; or44(e) operating an
COBS 14.3.2RRP
A firm must provide a client with a general description of the nature and risks of designated investments, taking into account, in particular, the client's categorisation as a retail client or a professional client. That description must:(1) explain the nature of the specific type of designated investment concerned, as well as the risks particular to that specific type of designated investment, in sufficient detail to enable the client to take investment decisions on an informed
COBS 14.3.3RRP
If a firm provides a retail client with information about a designated investment that is the subject of a current offer to the public and a prospectus has been published in connection with that offer in accordance with the Prospectus Directive, that firm must inform the retail client where that prospectus is made available to the public.8
COBS 14.3.4RRP
Where the risks associated with a designated investment composed of two or more different designated investments or services are likely to be greater than the risks associated with any of the components, a firm must provide an adequate description of the components of that designated investment and the way in which its interaction increases the risks.8
COBS 14.3.5RRP
In the case of a designated investment that incorporates a guarantee by a third party, the information about the guarantee must include sufficient detail about the guarantor and the guarantee to enable the retail client to make a fair assessment of the guarantee.8
COBS 14.3.6GRP
[deleted]8
COBS 14.3.7GRP
Providing a key features document, key investor information document, EEA key investor information document3 or NURS-KII document7 may satisfy the requirements of the rules in this section.
COBS 14.3.7AGRP
4Examples of information a firm advising on P2P agreements or P2P portfolios10 should provide to explain the specific nature and risks of a P2P agreement or a P2P portfolio10 include:(1) expected and actual default rates in line with the requirements in COBS 4.6 on past and future performance;(2) a summary of the assumptions used in determining expected future default rates;(3) a description of how loan risk is assessed, including a description of the criteria that must be met
COBS 14.3.7BGRP
10When complying with the information requirements set out in this chapter and other parts of the FCA Handbook, firms advising on a P2P agreement or a P2P portfolio may also wish to consider providing to retail clients any other information that an operator of an electronic system in relation to lending must disclose in accordance with COBS 18.12.6
COBS 14.3.7CGRP
6Firms providing information to clients, and communicating information, about an innovative finance ISA should also have regard to the guidance in COBS 4.5.9G.
COBS 14.3.8RRP
The documents and information provided in accordance with the rules in this section must be in a durable medium or available on a website (where that does not constitute a durable medium) that meets2 the website conditions.8
COBS 14.3.9RRP
(1) The information to be provided in accordance with the rules in this section must be provided in good time before a firm carries on designated investment business8 with or for a retail client.(2) A firm may provide that information immediately after it begins to carry on that business if:(a) the firm was unable to comply with (1) because, at the request of the client, the agreement was concluded using a means of distance communication which prevented the firm from complying
COBS 14.3.10RRP
A firm must notify a client in good time about any material change to the information provided under the rules in this section which is relevant to a service that the firm is providing to that client. That notification must be given in a durable medium if the information to which it relates is given in a durable medium.8
COBS 14.3.11RRP
If a firm provides a client with a key investor information document or EEA key investor information document3 that meets the requirements of articles 78 and 793 of the UCITS Directive (see COLL 4.7 (Key investor information and marketing communications)) and the KII Regulation,3 it will have provided appropriate information for the purpose of the requirement to disclose information on:33(1) designated investments and investment strategies (COBS 2.2.1R (1)(b)); and(2) costs and
COBS 14.3.12GRP
A key investor information document and EEA key investor information document or a NURS-KII document7 provide3 sufficient information in relation to the costs and associated charges in respect of the UCITS3 or KII-compliant NURS7 itself. However, a firm distributing units3 in a UCITS3 or KII-compliant NURS7 should also inform a client about all of the other costs and associated charges related to the provision of its services in relation to units in the UCITS or KII-compliant
COBS 21.3.-1RRP
4The rules in this section apply to linked long-term contracts of insurance where the investment risk is borne by a policyholder who is a natural person.
COBS 21.3.1RRP
An insurer must not contract to provide benefits under linked long-term contracts of insurance4 that are determined:4(1) wholly or partly, or directly or indirectly, by reference to fluctuations in any index other than an approved index;(2) wholly or partly by reference to the value of, or the income from, or fluctuations in the value of, property other than any of the following:(a) approved securities;(b) listed securities; (c) permitted unlisted securities; (d) permitted land
COBS 21.3.1ARRP
4A firm must classify the types of property listed in COBS 21.3.1R (2)(a) to (2)(m)7 according to their economic behaviour ahead of their legal form.
COBS 21.3.2GRP
(1) Nothing in these rules prevents a firm making allowance in the value of any permitted link or conditional permitted link7 for any notional tax loss associated with the relevant linked assets for the purposes of fair pricing.3(2) In the FCA's5 view the Consumer Prices Index, as well as the Retail Prices Index, is a national index of retail prices and so may be used as an approved index for the purposes of COBS 21.3.1R (1).3
COBS 21.3.6RRP
4A money-market instrument will be regarded as normally dealt in on the money market if it:(1) has a maturity at issuance of up to, and including, 397 days; or(2) has a residual maturity of up to, and including, 397 days; or(3) undergoes regular yield adjustments in line with money market conditions at least every 397 days; or(4) undergoes regular yield adjustments in line with money market conditions at least every 397 days.
COBS 21.3.7RRP
(1) 4A money-market instrument will be regarded as liquid if it can be sold at limited cost in an adequately short timeframe.(2) A money-market instrument will be regarded as having a value which can be accurately determined at any time if accurate and reliable valuations systems, which fulfil the following criteria, are available:(a) enabling the firm to calculate a net asset value in accordance with the value at which the instrument held in the portfolio could be exchanged between
COBS 21.3.8GRP
4A firm should assess the liquidity of a money-market instrument in accordance with CESR's UCITS eligible assets guidelines, with respect to article 4(1) of the UCITS eligible assets Directive.
COBS 21.3.9RRP
4A permitted stock lending transaction is one which, for a Solvency II firm, satisfies the requirements in COBS 21.3.11 R to COBS 21.3.12 R and, for an insurer which is not a Solvency II firm, satisfies INSPRU 3.2.36A R to INSPRU 3.2.42 G.
COBS 21.3.10RRP
4The specific method of stock lending permitted is an arrangement of the kind described in section 263B of the Taxation of Chargeable Gains Act 1992, under which the lender transfers securities to the borrower other than by way of sale and the borrower is to transfer those securities, or securities of the same type and amount, back to the lender at a later date. In accordance with good market practice, a separate transaction by way of transfer of assets is also involved for the
COBS 21.3.11RRP
(1) 4The stock lending arrangement is of the kind described in section 263B of the Taxation of Chargeable Gains Act 1992 (without extension by section 263C), and:(a) all the terms of the agreement under which securities are to be reacquired by the firm for the account of the unit-linked fund are in a form which is acceptable to the firm and in accordance with good market practice;(b) the counterparty is:(i) an authorised person; or(ii) a person authorised by a Home State regulator;
COBS 21.3.12RRP
(1) 4Collateral is adequate for the purposes of this section only if it is:(a) transferred to the firm or the firm's agent;(b) at least equal in value, at the time of the transfer to the firm or its agent, to the value of the securities transferred by the firm; and(c) in the form of one or more of:(i) cash;(ii) a certificate of deposit;(iii) a letter of credit;(iv) a readily realisable security;(v) commercial paper with no embedded derivative content;(vi) a qualifying money market
COBS 21.3.13RRP
4A permitted derivatives contract is one which:(1) for a Solvency II firm, is effected or issued:(a) on or under the rules of a regulated market; or(b) off-market with an approved counterparty; andsatisfies COBS 21.3.14 G; and(2) for an insurer which is not a Solvency II firm, satisfies INSPRU 3.2.5 R to INSPRU 3.2.35A G with the exception of INSPRU 3.2.18 R; and(3) in each of (1) and (2) the provisions are applied in relation to assets covering liabilities in respect of linked
COBS 21.3.14GRP
4Solvency II firms5 are also required to comply with the PRA Rulebook Solvency II Firms Investment and ensure that the use of derivative contracts is adequately covered. Firms are also referred to the rules in COLL 5.3 (Derivative Exposure) in relation to the use of derivatives in investment funds and the further guidance from CESR and its successor body, ESMA, which represent good practice in this area.
COBS 19.5.1RRP
This section applies to:3(1) a firm which operates a relevant scheme in which there are at least two relevant policyholders; or3(2) a firm which offers or has decided to offer a pathway investment.3
COBS 19.5.2RRP
A firm (Firm A) must establish an IGC, unless:3(1) Firm A has established a governance advisory arrangement in accordance with COBS 19.5.3R; or3(2) another firm in Firm A’s group has already established an IGC under this section, and Firm A has made arrangements with that IGC to cover a relevant scheme operated by Firm A or a pathway investment offered by Firm A.3
COBS 19.5.3RRP
(1) If a firm considers it appropriate, it may establish a governance advisory arrangement instead of an IGC, having regard to:3(a) for a relevant scheme operator, the size, complexity and nature of the relevant scheme it operates; or3(b) for a pathway firm, the size of the take up, or expected size of the take up, complexity and nature of the pathway investment.3(2) If a firm has decided to establish a governance advisory arrangement rather than an IGC, this section (other than
COBS 19.5.4GRP
(1) Firms with large or complex relevant schemes should establish an IGC. For the purposes of this section, a firm may determine whether it has large relevant schemes by reference to:(a) the number of relevant policyholders in relevant schemes; (b) the funds under management in relevant schemes; and(c) the number of employers contributing to relevant schemes.(2) Examples of features that might indicate complex schemes include: (a) schemes that are operated on multiple information
COBS 19.5.5RRP
A firm must include, as a minimum, the following requirements in its terms of reference for an IGC:(1) the IGC will act solely in the interests of:3(a) relevant policyholders and any other members or clients a firm asks the IGC to consider; or3(b) pathway investors;3(2) the IGC will assess the ongoing value for money for relevant policyholders delivered by a relevant scheme3 particularly, though not exclusively, through assessing:(a) whether default investment strategies within
COBS 19.5.6GRP
(1) An IGC is expected to act in the interests of relevant policyholders or pathway investors3 both individually and collectively. Where there is the potential for conflict between individual and collective interests, the IGC should manage this conflict effectively. An IGC is not expected to deal directly with complaints from individual policyholders or pathway investors3. (2) The primary focus of an IGC should be the interests of relevant policyholders or pathway investors in
COBS 19.5.7RRP
A firm must:(1) take reasonable steps to ensure that the IGC acts and continues to act in accordance with its terms of reference;(2) take reasonable steps to provide the IGC with all information reasonably requested by the IGC in good time3 for the purposes of carrying out its role;(3) provide the IGC with sufficient resources as are reasonably necessary to allow it to carry out its role independently;(4) have arrangements to ensure that the views of relevant policyholders or
COBS 19.5.8GRP
(1) A firm should consider allocating responsibility for the management of the relationship between the firm and its IGC to a person at the firm holding an FCAsignificant-influence function or designated senior management function2.(2) A firm should fund independent advice for the IGC if this is necessary and proportionate.(3) A firm should not unreasonably withhold from the IGC information that would enable the IGC to carry out its duties in the IGC’s remit of review3. (3A)
COBS 19.5.9RRP
(1) A firm must take reasonable steps to ensure that the IGC has sufficient collective expertise and experience to be able to make judgements on the matters in the IGC’s remit of review3.(2) A firm must recruit independent IGC members through an open and transparent recruitment process.(3) A firm must appoint members to the IGC so that:(a) the IGC consists of at least five members, including an independent Chair and a majority of independent members; (b) IGC members are bound
COBS 19.5.10GRP
(1) The effect of COBS 19.5.9R (3)(b) is that employees of the firm who serve on an IGC should be subject to appropriate contractual terms so that, when acting in the capacity of an IGC member, they are free to act within the terms of reference of the IGC without conflict with other terms of their employment. In particular, when acting as an IGC member, an employee will be expected to act solely in the interests of relevant policyholders or pathway investors3 and should be able
COBS 19.5.11RRP
The firm, in appointing independent IGC members, must determine whether such a member is independent in character and judgement and whether there are relationships or circumstances which are likely to affect, or could appear to affect, that member’s judgement.
COBS 19.5.12GRP
(1) An IGC member is unlikely to be considered independent if any of the following circumstances exist:(a) the individual is an employee of the firm or of a company within the firm'sgroup or paid by them for any role other than as an IGC member, including participating in the firm's share option or performance-related pay scheme;(b) the individual has been an employee of the firm or of another company within the firm'sgroup within the five years preceding his appointment to the
COBS 19.6.1RRP
This section applies to an operator of a qualifying scheme.
COBS 19.6.2RRP
The restrictions on administration charges in COBS 19.6.4 R do not apply in relation to a default arrangement under which, at any time before benefits come into payment, those benefits accruing to the member involve, or involve an option to have, a promise by or to be obtained from a third party about the rate or amount of those benefits.
COBS 19.6.3GRP
(1) In this section, where express agreement is required by a rule, the FCA would expect firms to take active steps to obtain the informed, active consent of the affected member(s) of the qualifying scheme, and to have that consent in writing in a durable medium, capable of being produced or reproduced when requested by the FCA. (2) The FCA does not consider the following to amount to express agreement (this list is not exhaustive):(a) a member receiving a communication stating
COBS 19.6.4RRP
A firm, for a default arrangement within a qualifying scheme, may only make, impose or otherwise facilitate payment of an administration charge1 by way of an accrued rights charge or a combination charge structure where:(1) the limits in COBS 19.6.6 R are not exceeded; or(2) the firm has obtained appropriate express agreement to exceed the limits and the following conditions are satisfied:(a) the express agreement contains an acknowledgement by the member that the administration
COBS 19.6.5GRP
The effect of COBS 19.6.4R (2)(c) is that a firm may not seek express agreement from a member to charges in excess of the limits for services which are obligatory under law, or form part of the core operation of the scheme. Such core services include, for example, designing and implementing an investment strategy, investing contributions to the scheme (to the extent that this would incur administration charges1), holding investments relating to scheme members and transferring
COBS 19.6.6RRP
The limits on administration charges are as follows: (1) for a qualifying scheme which uses only an accrued rights charge, 0.75% of the value of those accrued rights; (2) for a qualifying scheme which uses a combination charge scheme:(a) for the flat-fee charge element, £25 annually;(b) for the contribution percentage charge element, 2.5% of the contributions annually; (c) for the associated accrued rights charge, the limits as set out in column 2 of the table in COBS 19.6.7
COBS 19.6.7RRP

This is the table referred to in COBS 19.6.6 R.

Contribution percentage charge rate (%)

Accrued rights charge rate (%)

1 or lower

0.6

Higher than 1 but no higher than 2

0.5

Higher than 2 but no higher than 2.5

0.4

Flat-fee charge (£)

Accrued rights charge rate (%)

10 or less

0.6

More than 10 but no more than 20

0.5

More than 20 but no more than 25

0.4

COBS 19.6.8ERP
(1) To ensure that administration charges1 are within the limits set out in COBS 19.6.6 R:(a) a firm should calculate the value of accrued rights in an accrued rights charge as the arithmetic mean over a 12-month period of membership of the qualifying scheme, using at least four evenly-distributed reference points over that period;(b) a firm should calculate the value of contributions in a contribution percentage charge over a 12-month period of membership of the qualifying scheme
COBS 19.6.9RRP
(1) A firm must not make any administration charge,1 or otherwise make or facilitate any payment or provide any non-monetary benefit, in respect of any service provided by a third party in connection with a qualifying scheme which would have the effect of decreasing the value of the accrued rights of any member of that scheme.22(2) The restriction in (1) does not apply where the firm has obtained express agreement from the relevant member to such a payment.
COBS 19.6.11RRP
2A firm must not impose greater administration charges1 on a member of a qualifying scheme whose workplace pension contributions ceased on or after 6 April 2016 than those imposed on a member for whom such contributions are still being made.
COBS 19.6.12GRP
2The effect of COBS 19.6.11 R is to prohibit active member discounts within automatic enrolment schemes.
COBS 5.2.1RRP
This section applies to a firm1carrying on 1an electronic commerce activity1from an establishment in the United Kingdom, with or for a person in the United Kingdom or another EEA State1.
COBS 5.2.2RRP
A firm must make at least the following information easily, directly and permanently accessible to the recipients of the information society services it provides:(1) its name;(2) the geographic address at which it is established;(3) the details of the firm, including its e-mail address, which allow it to be contacted rapidly and communicated with in a direct and effective manner;(4) an appropriate statutory status disclosure statement (GEN 4 Annex 1 R or GEN 4 Annex 1A R as appropriate4),
COBS 5.2.3RRP
If a firm refers to price, it must do so clearly and unambiguously, indicating whether the price is inclusive of tax and delivery costs.[Note: article 5(2) of the E-Commerce Directive]
COBS 5.2.4RRP
A firm must ensure that commercial communications which are part of, or constitute, an information society service, comply with the following conditions:(1) the commercial communication must be clearly identifiable as such;(2) the person on whose behalf the commercial communication is made must be clearly identifiable;(3) promotional offers must be clearly identifiable as such, and the conditions that must be met to qualify for them must be easily accessible and presented clearly
COBS 5.2.5RRP
An unsolicited commercial communication sent by e-mail by a firm established in the United Kingdom must be identifiable clearly and unambiguously as an unsolicited commercial communication as soon as it is received by the recipient. [Note: article 7(1) of the E-Commerce Directive]
COBS 5.2.6RRP
A firm must (except when otherwise agreed by parties who are not consumers):(1) give an ECA recipient at least the following information, clearly, comprehensibly and unambiguously, and prior to the order being placed by the recipient of the service:(a) the different technical steps to follow to conclude the contract;(b) whether or not the concluded contract will be filed by the firm and whether it will be accessible;(c) the technical means for identifying and correcting input
COBS 5.2.7RRP
For the purposes of COBS 5.2.6 R (3), an order and an acknowledgement of receipt are deemed to be received when the parties to whom they are addressed are able to access them. [Note: article 11(1) of the E-Commerce Directive]
COBS 5.2.8RRP
Contractual terms and conditions provided by a firm to an ECA recipient must be made available in a way that allows the recipient to store and reproduce them. [Note: article 10(3) of the E-Commerce Directive]
COBS 5.2.9RRP
The requirements relating to the placing and receipt of orders (COBS 5.2.6 R) do not apply to contracts concluded exclusively by exchange of e-mail or by equivalent individual communications. [Note: article 10(4) and 11(3) of the E-Commerce Directive]
COBS 12.2.1RRP
[deleted]2
COBS 12.2.2GRP
[deleted]2
COBS 12.2.3RRP
[deleted]2
COBS 12.2.4GRP
[deleted]2
COBS 12.2.5RRP
[deleted]2
COBS 12.2.5AGRP
[deleted]2
COBS 12.2.6GRP
[deleted]2
COBS 12.2.7GRP
[deleted]2
COBS 12.2.8GRP
[deleted]2
COBS 12.2.9GRP
[deleted]2
COBS 12.2.10RRP
[deleted]2
COBS 12.2.11GRP
[deleted]2
COBS 12.2.12GRP
[deleted]2
COBS 12.2.13GRP
[deleted]2
COBS 11.3.1RRP
(1) A firm (other than a UCITS management company3 providing collective portfolio management services)1 which is authorised to execute orders on behalf of clients must implement procedures and arrangements which provide for the prompt, fair and expeditious execution of client orders, relative to other orders or the trading interests of the firm.[Note: paragraph 1 of article 28(1)3 of MiFID](2) These procedures or arrangements must allow for the execution of otherwise comparable
COBS 11.3.2RRP
[deleted]311
COBS 11.3.3GRP
For the purposes of the provisions of this section, orders should not be treated as otherwise comparable if they are received by different media and it would not be practicable for them to be treated sequentially. [Note: recital 1103 to the MiFID Org Regulation3]
COBS 11.3.4RRP
Where a management company3 executes the order itself in the course of providing collective portfolio management services,1 it must take all reasonable steps to ensure that any clientfinancial instruments or client funds received in settlement of that executed order are promptly and correctly delivered to the account of the appropriate UCITS scheme3. [Note:3 article 27(1) third paragraph of the UCITS implementing Directive]11
COBS 11.3.5RRP
[deleted]311
COBS 11.3.6GRP
Without prejudice to the Market Abuse Regulation2, for the purposes of the provision3 on the misuse of information (see COBS 11.3.5AEU3), any use by a firm of information relating to a pending client order in order to deal on own account in the financial instruments to which the client order relates, or in related financial instruments, should be considered a misuse of that information. However, the mere fact that market makers or bodies authorised to act as counterparties confine
COBS 11.3.7RRP
[deleted]311
COBS 11.3.8RRP
[deleted]311
COBS 11.3.9RRP
[deleted]311
COBS 11.3.10RRP
[deleted]311
COBS 11.3.11RRP
[deleted]3
COBS 11.3.12GRP
For the purposes of the provisions of this section, the reallocation of transactions should be considered as detrimental to a client if, as an effect of that reallocation, unfair precedence is given to the firm or to any particular person. [Note: recital 109 3 to the MiFID Org Regulation3]
COBS 11.3.13GRP
In this section, carrying out client orders includes:(1) the execution of orders on behalf of clients;(2) the placing of orders with other entities for execution that result from decisions to deal in financial instruments on behalf of clients when providing the service of portfolio management or collective portfolio management;1(3) the transmission of client orders to other entities for execution when providing the service of reception and transmission of orders.
COBS 16.3.1RRP
(1) If a firm is managing investments on behalf of a client, it must provide the client with a periodic statement in a durable medium unless:3(a) 3such a statement is provided by another person; or(b) 3all of the conditions in (1A) are satisfied.(1A) 3The conditions are that:(a) 3the firm provides the client with access to an online system which qualifies as a durable medium;(b) 3the online system provides the client with easy access to:(i) 3up-to-date valuations of the client’sdesignated
COBS 16.3.2RRP
(1) In the case of a retail client, the periodic statement must be provided once every six months, except in the following cases:(a) if the retail client so requests, the periodic statement must be provided every three months;(b) if the retail client elects to receive information about executed transactions on a transaction-by-transaction basis (COBS 16.3.3 R) and there are no transactions in derivatives or other securities giving the right to acquire or sell a transferable security
COBS 16.3.3RRP
(1) If the client elects to receive information about executed transactions on a transaction-by-transaction basis, a firmmanaging investments must provide promptly to the client, on the execution of a transaction, the essential information concerning that transaction in a durable medium.(2) If the client is a retail client, the firm must send the client3 a notice confirming the transaction and containing such of the information identified in column (1) of the table in COBS 16
COBS 16.3.4GRP
In accordance with COBS 2.4.9 R, a firm may dispatch a periodic statement to an agent, other than the firm or an associate of the firm, nominated by the client in writing.
COBS 16.3.5RRP
For the purposes of calculating the unit price in the trade confirmation information or periodic information, where the order is executed in tranches, the firm may supply the client with information about the price of each tranche or the average price. If the average price is provided, the firm must supply the retail client with information about the price of each tranche upon request.3
COBS 16.3.6RRP
(1) If a firm:(a) manages investments for a retail client; or(b) operates a retail client account that includes an uncovered open position in a contingent liability transaction,it must report to the retail client any losses exceeding any predetermined threshold, agreed between it and the retail client.(2) The firm must report:(a) no later than the end of the business day in which the threshold is exceeded; or(b) if the threshold is exceeded on a non-business day, the close of
COBS 16.3.7RRP
For the purposes of this section, a contingent liability transaction is one that involves any actual or potential liability for the client that exceeds the cost of acquiring the instrument.3
COBS 16.3.8RRP
[intentionally blank]
COBS 16.3.9GRP
When providing a periodic statement to a retail client, a firm should consider whether to include:(1) the collateral value in respect of any contingent liability transaction in the client's portfolio during the relevant period; and(2) option account valuations in respect of each open option written by the client in the client's portfolio at the end of the relevant period; stating:(a) the share, future, index or other investment involved;(b) the trade price and date for the opening
COBS 16.3.11RRP
A firm must make, and retain, a copy of any periodic statement for a period of at least three years3 from the date of despatch.3
COBS 4.10.1GRP
The rules in SYSC 3 (and also for Solvency II firms, the PRA Rulebook: Solvency II firms: Conditions Governing Business)1 and SYSC 4 require a firm that communicates with a client in relation to designated investment business, or communicates or approves a financial promotion, to put in place systems and controls or policies and procedures, or an effective internal control system,1 in order to comply with the rules in this chapter.
COBS 4.10.2RRP
(1) Before a firmapproves a financial promotion for communication by an unauthorised person, it must confirm that the financial promotion complies with the financial promotion rules.(2) If, at any time after a firm has complied with (1), a firm becomes aware that a financial promotion no longer complies with the financial promotion rules, it must withdraw its approval and notify any person that it knows to be relying on its approval as soon as reasonably practicable.(3) When approving
COBS 4.10.3GRP
(1) Section 21(1) of the Act (Restrictions on financial promotion) prohibits an unauthorised person from communicating a financial promotion, in the course of business, unless an exemption applies or the financial promotion is approved by a firm. Many of the rules in this chapter apply when a firmapproves a financial promotion in the same way as when a firmcommunicates a financial promotion itself.(2) A firm may also wish to approve a financial promotion that it communicates itself.
COBS 4.10.4RRP
A firm must not approve a financial promotion to be made in the course of a personal visit, telephone conversation or other interactive dialogue.
COBS 4.10.5RRP
If a firmapproves a financial promotion in circumstances in which one or more of the financial promotion rules, or the prohibition on approval of promotions for collective investment schemes in section 240(1) of the Act (Restriction on approval), are expressly disapplied, the approval must be given on terms that it is limited to those circumstances.
COBS 4.10.6GRP
For example, if a firmapproves a financial promotion for communication to a professional client or an eligible counterparty, the approval must be limited to communication to such persons.
COBS 4.10.7GRP
If an approval is limited, and an unauthorised personcommunicates the financial promotion to persons not covered by the approval, the unauthorised person may commit an offence under the restriction on financial promotion in the Act (section 21). A firm giving a limited approval may wish to notify the unauthorised person accordingly.
COBS 4.10.8GRP
If a firm continues to communicate a financial promotion when the financial promotion no longer complies with the rules in this chapter, it will breach those rules.
COBS 4.10.9GRP
A financial promotion which is clearly only relevant at a particular date will not cease to comply with the financial promotion rules merely because the passage of time has rendered it out-of-date; an example would be a dated analyst's report.
COBS 4.10.11GRP
A firm should inform anyone relying on its confirmation of compliance if it becomes aware that the financial promotion no longer complies with the rules in this chapter.
COBS 9.2.1RRP
(1) A firm must:3(a) take reasonable steps to ensure that a personal recommendation, or a decision to trade, is suitable for its client; and3(b) ensure that any life policy proposed is consistent with the client’s insurance demands and needs.3(2) When making the personal recommendation or managing his investments, the firm must obtain the necessary information regarding the client's:(a) knowledge and experience in the investment field relevant to the specific type of designated
COBS 9.2.2RRP
(1) A firm must obtain from the client such information as is necessary for the firm to understand the essential facts about him and have a reasonable basis for believing, giving due consideration to the nature and extent of the service provided, that the specific transaction to be recommended, or entered into in the course of managing:(a) meets his investment objectives;(b) is such that he is able financially to bear any related investment risks consistent with his investment
COBS 9.2.3RRP
The information regarding a client’s knowledge and experience in the investment field includes, to the extent appropriate to the nature of the client, the nature and extent of the service to be provided and the type of product or transaction envisaged, including their complexity and the risks involved, information on:(1) the types of service, transaction and designated investment with which the client is familiar;(2) the nature, volume, frequency of the client’s transactions in
COBS 9.2.4RRP
A firm must not encourage a client not to provide information for the purposes of its assessment of suitability.2
COBS 9.2.5RRP
A firm is entitled to rely on the information provided by its clients unless it is aware that the information is manifestly out of date, inaccurate or incomplete.2
COBS 9.2.6RRP
If a firm does not obtain the necessary information to assess suitability, it must not make a personal recommendation to the client or take a decision to trade for him.2
COBS 9.2.7GRP
Although a firm may not be permitted to make a personal recommendation or take a decision to trade because it does not have the necessary information, its client may still ask the firm to provide another service such as, for example, to arrange a deal or to deal as agent for the client. If this happens, the firm should ensure that it receives written confirmation of the instructions. The firm should also bear in mind the client's best interests rule and any obligation it may have
COBS 9.2.8RRP
[deleted]2
COBS 9.2.9RRP
(1) When recommending a small friendly societylife policy, a firm, for the purpose of assessing suitability, need only obtain details of the net income and expenditure of the client and his dependants.(2) A friendly societylife policy is small if the premium:(a) does not exceed £50 a year; or(b) if payable weekly, £1 a week.(3) The firm must keep for five years a record of the reasons why the recommendation is considered suitable.
COBS 4.5.1RRP
(1) Subject to (2) and (3), this section applies to a firm in relation to:(a) the provision of information in relation to its designated investment business; and(b) the communication or approval of a financial promotion;where such information or financial promotion is addressed to, or disseminated in such a way that it is likely to be received by, a retail client.(2) This section does not apply to a firm communicating in relation to its MiFID, equivalent third country or optional
COBS 4.5.2RRP
A firm must ensure that information:(1) includes the name of the firm;(2) is accurate and always gives a fair and prominent indication of any relevant risks when referencing6 any potential benefits of relevant business or a relevant investment6; (3) is sufficient for, and presented in a way that is likely to be understood by, the average member of the group to whom it is directed, or by whom it is likely to be received;6(4) does not disguise, diminish or obscure important items,
COBS 4.5.3GRP
The name of the firm may be a trading name or shortened version of the legal name of the firm, provided the retail client can identify the firm communicating the information.
COBS 4.5.4GRP
In deciding whether, and how, to communicate information to a particular target audience, a firm should take into account the nature of the product or business, the risks involved, the client's commitment, the likely information needs of the average recipient, and the role of the information in the sales process.
COBS 4.5.5GRP
When communicating information, a firm should consider whether omission of any relevant fact will result in the6 information being insufficient, unclear, unfair or misleading. When considering whether a fact should be included in the communication or omitted from it, a firm should bear in the mind the guidance in COBS 4.2.2G to provide information which is appropriate and proportionate.7
COBS 4.5.6RRP
6If information compares relevant business, relevant investments, or persons who carry on relevant business, a firm must ensure that the comparison is meaningful and presented in a fair and balanced way
COBS 4.5.7RRP
(1) If any information refers to a particular tax treatment, a firm must ensure that it prominently states that the tax treatment depends on the individual circumstances of each client and may be subject to change in future.6(2) This rule applies in relation to a financial promotion except6 to the extent that it relates to66a pure protection contract that is a long-term care insurance contract6.
COBS 4.5.8RRP
(1) A firm must ensure that information contained in a financial promotion is consistent with any information the firm provides to a retail client in the course of carrying on designated investment business6.6(2) This rule does not apply to a financial promotion to the extent that it relates 6a pure protection contract that is a long-term care insurance contract.
COBS 4.5.9GRP
4Examples of information about relevant risks (COBS 4.5.2R) that a firm should give a retail client in relation to an innovative finance ISA include:(1) an explanation of the tax consequences if:(a) the innovative finance component is a P2P agreement that is not repaid; and (b) an operator of an electronic system in relation to lending which facilitates a P2P agreement fails;(2) the procedure for, timing and tax consequences of:(a) withdrawing a P2P agreement from the innovative
COBS 4.5.10GRP
4Operators of electronic systems in relation to lending and firms which advise on P2P agreements should also have regard to the guidance in COBS 14.3.7AG and COBS 14.3.7BG regarding the types of information they should provide to clients to explain the specific nature and risks of P2P agreements.
COBS 9.1.1RRP
1This chapter applies to a firm which:4(a) 4makes a personal recommendation to a retail client in relation to a designated investment;(b) 4manages investments of a retail client of the firm;(c) 4manages the assets of an occupational pension scheme, stakeholder pension scheme or personal pension scheme,4other than in relation to its MiFID, equivalent third country or optional exemption business or to an insurance-based investment product5.32
COBS 9.1.2RRP
If a firm to which this chapter applies5 makes a personal recommendation in relation to a stakeholder product5 it may choose to give basic advice under the rules in section 9.6 of this chapter instead of the rules in the remainder of this chapter.
COBS 9.1.3RRP
[deleted]4
COBS 9.1.3AGRP
3This chapter does not apply to a firm which manages investments when that firm takes a decision to trade for a client and that decision relates to a P2P agreement. This is because the regulated activity of managing investments does not extend to the management of assets where those assets are P2P agreements.
COBS 9.1.5RRP
If the firm makes a personal recommendation to a professional client to take out a life policy which is not an insurance-based investment product5, this chapter applies, but4 only those rules which implement the requirements of the IDD5.
COBS 9.1.6GRP
If a rule implements a requirement of the IDD5, a Note (“Note:”)5 follows the rule indicating which provision is being implemented. COBS 2.1 (acting honestly fairly and professionally), COBS 2.6 (additional insurance distribution obligations, COBS 4 (communicating with clients), COBS 6 (information about the firm, its services and remuneration) and COBS 14 (product information) contains contain further rules implementing the IDD5
COBS 9.1.7GRP
[deleted]5
COBS 9.1.8GRP
For a firm making personal recommendations in relation to pensions:7(1) COBS 19.1 contains additional provisions relevant to assessing suitability and the contents of suitability reports for full pension transfer or conversion advice; and7(2) COBS 19.1A contains additional provisions relevant to assessing suitability and the contents of suitability reports for abridged advice.7
COBS 9.1.9GRP
COBS 6.1ZA5 (Insurance mediation) contains requirements relating to the basis on which certain recommendations may be made, including requirements relating to fair analysis and range and scope.
COBS 10.2.1RRP
(1) When providing a service to which this chapter applies, a firm must ask the client to provide information regarding his knowledge and experience in the investment field relevant to the specific type of product or service offered or demanded so as to enable the firm to assess whether the service or product envisaged is appropriate for the client.(2) When assessing appropriateness, a firm must determine whether the client has the necessary experience and knowledge in order to
COBS 10.2.2RRP
The information regarding a client's knowledge and experience in the investment field includes, to the extent appropriate to the nature of the client, the nature and extent of the service to be provided and the type of product or transaction envisaged, including their complexity and the risks involved, information on:(1) the types of service, transaction and designated investment with which the client is familiar;(2) the nature, volume, frequency of the client's transactions in
COBS 10.2.3RRP
A firm must not encourage a client not to provide information required for the purposes of its assessment of appropriateness.2
COBS 10.2.4RRP
A firm is entitled to rely on the information provided by a client unless it is aware that the information is manifestly out of date, inaccurate or incomplete.2
COBS 10.2.5GRP
When assessing appropriateness, a firm may use information it already has in its possession.
COBS 10.2.6GRP
Depending on the circumstances, a firm may be satisfied that the client's knowledge alone is sufficient for him to understand the risks involved in a product or service. Where reasonable, a firm may infer knowledge from experience.
COBS 10.2.7GRP
If, before assessing appropriateness, a firm seeks to increase the client's level of understanding of a service or product by providing information to him, relevant considerations are likely to include the nature and complexity of the information and the client's existing level of understanding.
COBS 10.2.8GRP
If a firm is satisfied that the client has the necessary experience and knowledge in order to understand the risks involved in relation to the product or service, there is no duty to communicate this to the client. If the firm does so, it must not do so in a way that amounts to making a personal recommendation unless it complies with the rules in COBS 9 (Suitability (including basic advice) (non-MiFID provisions))2.
COBS 21.2.1RRP
For the purposes of determining policyholder benefits, a1firm must ensure that the values of its permitted links and conditional permitted links4 are determined fairly and accurately.1
COBS 21.2.1ARRP
1An insurer must not contract to provide benefits under linked long-term contracts of insurance that are determined wholly or partly, directly or indirectly, by reference to fluctuations in any index or wholly or partly by reference to the value of, or the income from, or fluctuations in the value of, property other than in accordance with the rules in this section.
COBS 21.2.1BGRP
1Insurers other than EEAinsurers effecting linked long-term contracts of insurance are obliged to comply with the requirements on investments in the PRA Rulebook Solvency II Firms Investments.
COBS 21.2.4RRP
A firm must notify its linked policyholders of the risk profile and investment strategy for the linked fund:(1) at inception;4(2) before making any material changes; and4(3) (in relation to conditional permitted links) at other appropriate times, taking into account a policyholder’s needs.4
COBS 21.2.4ARRP
1A firm that has entered into a reinsurance contract in respect of its linked long-term insurance business must nevertheless discharge its responsibilities under its linked long-term insurance contracts, as if no reinsurance contract had been effected.
COBS 21.2.4BGRP
To comply with the requirements of COBS 21.2.4A R, a firm should:(1) disclose to policyholders the implications of any credit-risk exposure they may face in relation to the solvency of the reinsurer; and(2) suitably monitor the way the reinsurer manages the business in order to discharge its continuing responsibilities to policyholders.
COBS 21.2.8RRP
A firm must notify the FCA1 in writing as soon as it becomes aware of any failure to meet the requirements of COBS 21, or of the PRA Rulebook Solvency II Firms Investments or the PRA Rulebook: Non-Solvency II firm sector2 to the extent applicable to linked long-term contracts of insurance.111
COBS 21.2.9GRP
In considering what action to take in response to written notification of a failure to meet the requirements of this section, the FCA2 will have regard to the extent to which the relevant circumstances are exceptional and temporary and to any other reasons for the failure.
COBS 9.4.1RRP
1A firm must provide a suitability report to a retail client if the firm makes a personal recommendation to the client and the client:(1) acquires a holding in, or sells all or part of a holding in:(a) a regulated collective investment scheme;(b) an investment trust where the relevant shares have been or are to be acquired through an investment trust savings scheme;(c) an investment trust where the relevant shares are to be held within an ISA which has been promoted as the means
COBS 9.4.2RRP
If a firm makes a personal recommendation in relation to a life policy, it must provide the client with a suitability report.[Note: first and third paragraphs of article 20(1) of the IDD8]
COBS 9.4.3RRP
The obligation to provide a suitability report does not apply:(1) if the firm, acting as an investment manager for a retail client, makes a personal recommendation relating to a regulated collective investment scheme;(2) if the client is habitually resident outside the EEA and the client is not present in the United Kingdom at the time of acknowledging consent to the proposal form to which the personal recommendation relates;(3) [deleted]8(4) if the personal recommendation is
COBS 9.4.4RRP
A firm must provide the suitability report to the client:(1) in the case of a life policy, before the contract is concluded8; (2) in the case of a personal pension scheme or stakeholder pension scheme that is not a life policy8, where the rules on cancellation (COBS 15) require notification of the right to cancel, no later than the fourteenth day after the contract is concluded;11(2A) in the case of a pension transfer or pension conversion, in good time before the transaction
COBS 9.4.5RRP
[deleted]8
COBS 9.4.6RRP
In the case of telephone selling of a life policy, when the only contact between a firm and its client before conclusion of a contract is by telephone, the suitability report must be given in accordance with COBS 7.4.8[Note: article 23(7) of the IDD8]
COBS 9.4.7RRP
The suitability report must, at least:(1) specify, on the basis of the information obtained from the client,8 the client's demands and needs;(2) explain why the firm has concluded that the recommended transaction is suitable for the client having regard to the information provided by the client; 8(3) explain any possible disadvantages of the transaction for the client; and8(4) in the case of a life policy, include a personalised recommendation explaining why a particular life
COBS 9.4.8RRP
8A firm must ensure the details are modulated according to the complexity of the transaction or the proposed contract of insurance and the type of client.[Note: article 20(2) of the IDD8]
COBS 9.4.9RRP
If a firm is providing a suitability report in the course of insurance distribution activity8, the information must be in accordance with COBS 7.4.8[Note: article 23 of the IDD8]
COBS 9.4.10GRP
When a firm is making a personal recommendation to a retail client about income withdrawals or purchase of short-term annuities or making uncrystallised funds pension lump sum payments,6 explanation of possible disadvantages in the suitability report should include the risk factors involved in entering into an income withdrawal, purchase of a short-term annuity or making uncrystallised funds pension lump sum payments6. These may include:(1) the capital value of the fund may be
COBS 4.6.1RRP
(1) Subject to (2) and (3), this section applies to a firm in relation to:1(a) [deleted]61222(b) the communication or approval of a financial promotion,61where such information or financial promotion is addressed to, or disseminated in such a way that it is likely to be received by, a retail client.1(2) This section does not apply to a firm communicating in relation to its MiFID, equivalent third country or optional exemption business633(3) This6 section does not apply in relation
COBS 4.6.2RRP
A firm must ensure that information that contains an indication of past performance of relevant business, a relevant investment or a financial index, satisfies the following conditions:(1) that indication is not the most prominent feature of the communication;(2) the information includes appropriate performance information which covers the6 preceding five years, or the whole period for which the investment has been offered, the financial index has been established, or the service
COBS 4.6.3GRP
The obligations relating to describing performance should be interpreted in the light of their purpose and in a way that is appropriate and proportionate taking into account the means of communication and the information the communication is intended to convey. For example, a periodic statement in relation to managing investments that is sent in accordance with the rules on reporting information to clients (see COBS 16) may include past performance as its most prominent featu
COBS 4.6.4GRP
If a financial promotion includes information referring to the past performance of a packaged product that is not a financial instrument2, a firm will comply with the rule on appropriate performance information (COBS 4.6.2R (2)) if the financial promotion includes, in the case of a scheme, unit-linked life policy, unit-linked personal pension scheme or unit-linked stakeholder pension scheme (other than a unitised with-profits life policy or stakeholder pension scheme) past performance
COBS 4.6.4BGRP
(1) The firm should present the information referred to in COBS 4.6.4 G no less prominently than any other past performance information.(2) This guidance does not apply to a prospectus, key investor information document4 or NURS-KII document5 drawn up in accordance with COLL.
COBS 4.6.5GRP
(1) In relation to a packaged product (other than a scheme, a unit-linked life policy, unit-linked personal pension scheme or a unit-linked stakeholder pension scheme (that is not a unitised with-profits life policy or stakeholder pension scheme)), the information should be given on:(a) an offer to bid basis (which should be stated) if there is an actual return or comparison of performance with other investments; or(b) an offer to offer, bid to bid or offer to bid basis (which
COBS 4.6.6RRP
A firm must ensure that information that contains an indication of simulated past performance of relevant business, a relevant investment or a financial index, satisfies the following conditions:(1) it relates to an investment or a financial index;(2) the simulated past performance is based on the actual past performance of one or more investments or financial indices which are the same as, substantially the same as,6 or underlie, the investment concerned;(3) in respect of the
COBS 4.6.7RRP
(1) A firm must ensure that information that contains an indication of future performance of relevant business, a relevant investment, a structured deposit or a financial index, satisfies the following conditions:(a) it is not based on and does not refer to simulated past performance;(b) it is based on reasonable assumptions supported by objective data;(c) where6 the indication is based on gross performance, the effect of commissions, fees or other charges is disclosed6; (ca)
COBS 4.6.8GRP
A firm should not provide information on future performance if it is not able to obtain the objective data needed to comply with the rule on future performance. For example, objective data in relation to EIS shares may be difficult to obtain.
COBS 4.6.9RRP
(1) 1A firm that communicates to a client a projection for a packaged product which is not a financial instrument2must ensure that the projection complies with the projectionsrules in COBS 13.4, COBS 13.5 and COBS 13 Annex 2.2(2) A firm must not communicate a projection for a highly volatile product to a client unless the product is a financial instrument.
COBS 2.4.1RRP
This section applies to a firm that is conducting designated investment business or ancillary activities or, in the case of MiFID, equivalent third country or optional exemption business3, other ancillary services.
COBS 2.4.2GRP
This section is not relevant to, nor does it affect:32(1) 3the question of who is the firm’s counterparty for prudential purposes; or(2) 3any obligation a firm may owe to any other person under the general law; or(3) 3any obligation imposed on a firm by article 26 of MiFIR or RTS 22.
COBS 2.4.3RRP
(1) If a firm (F) is aware that a person (C1) with or for whom it is providing services is acting as agent for another person (C2) in relation to those services, C1, and not C2, is the client of F in respect of that business.(2) Paragraph (1) does not apply if:(a) F has agreed with C1 in writing to treat C2 as its client; or(b) C1 is neither a firm nor an overseas financial services institution1 and the main purpose of the arrangements between the parties is the avoidance of duties
COBS 2.4.4RRP
(1) This rule applies if a firm (F1), in the course of performing MiFID or equivalent third country business, receives an instruction to provide3 an investment or ancillary service on behalf of a client (C) through another firm (F2), if F2 is:(a) a MiFID investment firm or a third country investment firm; or(b) an investment firm that is:(i) a firm or authorised in another EEA State; and(ii) subject to equivalent relevant requirements.(2) F1 may rely upon:(a) any information about
COBS 2.4.5GRP
(1) If F1 is required to perform a suitability assessment or an appropriateness assessment under COBS 9A3 or COBS 10A3, it may rely upon a suitability assessment performed by F2, if F2 was subject to the requirements for assessing suitability in COBS 9A3 (excluding the basic advicerules) or equivalent requirements in another EEA State in performing that assessment.(2) If F1 is required to perform an appropriateness assessment under COBS 10A3, it may rely upon an appropriateness
COBS 2.4.6RRP
(1) This rule applies if the applicable4rule on reliance on other investment firms or insurance distributors (COBS 2.4.4 R and COBS 2.4.5AR4) does not apply.(2) A firm will be taken to be in compliance with any rule in this sourcebook that requires it to obtain information to the extent it can show it was reasonable for it to rely on information provided to it in writing by another person.
COBS 2.4.7ERP
(1) In relying on COBS 2.4.6 R, a firm should take reasonable steps to establish that the other person providing written information is not connected with the firm and is competent to provide the information.(2) Compliance with (1) may be relied upon as tending to establish compliance with COBS 2.4.6 R.(3) Contravention of (1) may be relied upon as tending to establish contravention of COBS 2.4.6 R.
COBS 2.4.8GRP
It will generally be reasonable (in accordance with COBS 2.4.6R (2)) for a firm to rely on information provided to it in writing by an unconnected authorised person or a professional firm, unless it is aware or ought reasonably to be aware of any fact that would give reasonable grounds to question the accuracy of that information.
COBS 2.4.9RRP
Any information that a rule in COBS or CASS requires to be sent to a client may be sent to another person on the instruction of the client so long as the recipient is not connected to the firm.
COBS 2.4.10RRP
In the case of business that is not MiFID or equivalent third country business, if a rule in COBS or CASS requires information to be sent to a client, a firm need not send that information so long as it takes reasonable steps to establish that it has been or will be supplied by another person.
COBS 11.1.1RRP
1This chapter3 applies 3to a firm.3(1) [deleted]3(2) [deleted]3
COBS 11.1.2RRP
Save as may be provided in the relevant sections, in6 this chapter, provisions marked "EU" apply to a firm which is not a MiFID investment firm3 as if they were rules.
COBS 11.1.3RRP
[deleted]62
COBS 11.1.4RRP
The section on personal account dealing applies to the designated investment business of a firm in relation to activities carried on from an establishment in the United Kingdom.
COBS 11.1.5GRP
The EEA territorial scope rule modifies the default territorial scope of the section on personal account dealing (see COBS 11.7 and COBS 11.7A6) to the extent necessary to be compatible with European law (see paragraph 1.1G5 of Part 3 of COBS 1 Annex 1). This means that the section on personal account dealing also applies to passported activities carried on by a UK MiFID investment firm or a UK UCITS management company5 from a branch in another EEA state, but does not apply to
COBS 11.1.6RRP
3The section on best execution (COBS 11.2A6) does not apply to a firm when:(1) executing orders: or(2) placing orders with other entities for execution: or(3) transmitting orders to other entities for execution;in relation to a spread-bet which is not a financial instrument, where the firm has not made a personal recommendation in relation to that spread-bet.
COBS 11.1.7RRP
4The section on best execution (COBS 11.2 or COBS 11.2B, as applicable6) does not apply to a firm when, acting in the capacity of operator of a regulated collective investment scheme, it purchases or sells units in that scheme.