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Status: You are viewing the version of the handbook as on 2019-01-03.

BCOBS 1 Annex 1 Structured deposit business

1Application of BCOBS to firms selling structured deposits

1.1

R

The BCOBS provisions shown below do not apply to a MiFID investment firm, a third country investment firm or a MiFID optional exemption firm in relation to the sale of structured deposits subject to the rules specified in COBS 1.1.1AR(2).

BCOBS provision

Description

BCOBS 2

Communications with banking customers and financial promotions

BCOBS 4 (other than BCOBS 4.1.4AG and BCOBS 4.3)

Information to be communicated to banking customers

1.2

G

A firm to which BCOBS 1 Annex 1 paragraph 1.1R applies should read and understand the reference to the appropriate information rule in BCOBS 4.1.4AG as referring to COBS 2.2A.2R.

1.3

G

A MiFID investment firm, a third country investment firm or a MiFID optional exemption firm that sells structured deposits should consider COBS 1.1.1AR to COBS 1.1.1ABR. These rules specify how certain provisions in COBS apply to a firm in relation to the sale of structured deposits.

Financial promotions relating to structured deposits

1.4

G

(1) BCOBS 2 contains rules which apply to a firm when it communicates a financial promotion that is not an excluded communication or when the firm approves a financial promotion.

(2) If a financial promotion relates to a structured deposit, rules relating to past, simulated past and future performance in COBS 4.5A or COBS 4.6 will also apply.

Structured deposits as PRIIPs

1.5

G

Firms are reminded that structured deposits are PRIIPs and that the provisions of the PRIIPs Regulation are also relevant to such products. The PRIIPs Regulation requires a person who advises on, or sells, a PRIIP to provide a retail investor (as defined in the PRIIPs Regulation) with the key information document for that PRIIP.

1.6

G

Where a firm is required to provide information in a key information document, it will not be required to provide the same information under BCOBS 4.1.

[Note: BCOBS 1.1.4R(3) and article 13 of the PRIIPs Regulation]