Home FCA Handbook CMCOB CMCOB 7 CMCOB 7.1 Purpose
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CMCOB 7.1 Purpose

01/03/2022G
  1. (1)

    This chapter builds upon the appropriate resources threshold condition set out in paragraph 2D of Schedule 6 to the Act (see COND 2.4), which requires firms to have appropriate resources including financial resources.

  2. (2)

    This chapter also builds upon Principle 4, which requires a firm to maintain adequate financial resources, by focusing upon the adequacy of that part of a firm’s financial resources that consists of capital resources.

  3. (3)

    The chapter also includes requirements for firms to have professional indemnity insurance if they carry on advice, investigation or representation in relation to a personal injury claim.

01/04/2019R

A contravention of the rules in CMCOB 7.2 or CMCOB 7.3 does not give rise to a right of action by a private person under section 138D of the Act (and each of those rules) is specified under section 138D(3) of the Act as a provision giving rise to no such right of action).