Related provisions for COBS 9.1.1
1 - 4 of 4 items.
(1) A firm must take reasonable steps to ensure that a personal recommendation, or a decision to trade, is suitable for its client.(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 investment or service;(b) financial situation; and(c) investment objectives;so as to enable the firm to make the
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
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) to any personal recommendation by a friendly society
When a firm is making a personal recommendation to a retail client about income withdrawals or purchase short-term annuities, explanation of possible disadvantages in the suitability report should include the risk factors involved in entering into an income withdrawal or purchase of a short-term annuity. These may include:(1) the capital value of the fund may be eroded;(2) the investment returns may be less than those shown in the illustrations;(3) annuity or scheme pension rates
When a firm is making a personal recommendation to a retail client about income withdrawals 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 client’s attitude to risk, ensuring that any discrepancy