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Status: You are viewing the version of the handbook as on 2005-06-30.

COB 1.4 General Application: where?

COB 1.4.1 G

The rules in COB 1.4 set out the maximum territorial scope of this sourcebook. Particular rules may have express territorial limitations.345

UK establishments: general

COB 1.4.2 R

Except as set out in this section, this sourcebook applies in relation to activities carried on from an establishment maintained by the firm (or its appointed representative) in the United Kingdom only.

5

Business with UK clients from non-UK offices

COB 1.4.3 R

This sourcebook applies in relation to activities not within COB 1.4.2 R (UK establishments: general) carried on with or for a client in the United Kingdom, except in any of the following cases:8

  1. (1)

    this sourcebook does not apply in relation to an activity carried on from an office outside the United Kingdom which, if that office were a separate person, would fall within the overseas persons exclusions in article 72 of the Regulated Activities Order or would not be regarded as carried on in the United Kingdom;8 or11

  2. (2)

    COB 4.2 (Terms of business and client agreements with customers), COB 5 (Advising and selling) and COB 6 (Product disclosure and the customer's right to cancel or withdraw) do not apply to a firm with respect to an activity exclusively concerning a distance contract with a retail customer, if the following conditions are satisfied:58

    1. (a)

      the firm carries on the activity from an establishment maintained by the firm in an EEA State other than the United Kingdom;8

    2. (b)

      either that EEA State:8

      1. (i)

        has implemented the DMD; or8

      2. (ii)

        has obligations in its domestic law corresponding to those provided for by the DMD;8

      and, in either case, with the result that the obligation provided for by the DMD (or corresponding obligations) are applied by that State when the firm carries on that activity; and8

    3. (c)

      the firm is a national of an EEA State or a company or firm mentioned in article 48 of the Treaty.8

COB 1.4.4 R

In addition to the situations in COB 1.4.2 R and COB 1.4.3 R, COB 5.5.7 R (Overseas business for UK private customers) applies wherever the activity is conducted.5

Financial promotions

COB 1.4.5 R

Notwithstanding COB 1.4.2 R and COB 1.4.3 R, the territorial scope of the financial promotion rulesCOB 3) is as set out in COB 3.3 (Application: where?).5

ISD investment firms: compensation information

COB 1.4.6 R

In addition to the situations in COB 1.4.2 R and COB 1.4.3 R, COB 5.5.9 R to COB 5.5.12 R apply to a UK firm which is an ISD investment firm in relation to passported activities carried on by it from a branch in another EEA State.5

9Life policies9

COB 1.4.7 R

In addition to the situations in COB 1.4.2 R and COB 1.4.3 R, COB 6 (Product disclosure and the customer's right to cancel or withdraw) applies in relation to life policies9 if the habitual residence of the client is in the United Kingdom, except:8

9
  1. (1)

    COB 6.3 (Post-sale confirmation: life policies);8

  2. (2)

    COB 6.9 (With-profits guides); and8

  3. (3)

    (in relation to the conclusion of a distance contract with a retail customer and if the conditions in COB 1.4.3 R (2) are satisfied) COB 6.7 (Cancellation and withdrawal) and any provision of COB 6 which requires the provision of information prior to the conclusion of the contract.58

9[deleted]9

COB 1.4.8 R

[deleted]9

5 8

[deleted]

COB 1.4.9 R

7[deleted]65

Electronic commerce activities and communications

COB 1.4.10 R

The territorial scope of this sourcebook is modified by ECO in relation to electronic commerce activities and electronic commerce communications.

COB 1.4.11 G

COB 1.9 contains guidance on how this sourcebook is modified by ECO.5

IMD passported activities10

COB 1.4.12 R
  1. (1)

    10Notwithstanding COB 1.4.2 R, the IMD minimum implementation provisions apply, on the basis outlined in (4), to the passported activities carried on by a UK firm under the IMD from a branch elsewhere in the EEA unless the Host State regulator imposes measures which implement articles 12 and 13 of the IMD for those activities.

  2. (2)

    Notwithstanding COB 1.4.2 R, the provisions in COB which implement articles 12 and 13 of the IMD (including COB 4.3.3R (1)(b)(i) (provision of initial disclosure document and fees and commission statement)) do not apply, on the basis outlined in (4), to a UK firm providing cross-border services in another EEA State under the IMD or the Consolidated Life Directive, except that the IMD minimum implementation provisions apply, on the basis outlined in (4), to a UK firm providing cross-border services in another EEA State under the IMD if the Host State regulator does not impose measures which implement the articles for those activities.

  3. (3)

    In addition to the situation in COB 1.4.3 R, the IMD minimum implementation provisions apply, on the basis outlined in (4), to an incoming EEA firm providing cross-border services in the United Kingdom under the IMD unless the firm's Home State regulator imposes measures which implement the articles for these activities.

  4. (4)

    The IMD minimum implementation provisions apply to an activity pursuant to this rule as follows:

    1. (a)

      as outlined in the IMD minimum implementation provisions; and

    2. (b)

      as if COB 4.3.19 R to COB 4.3.25 R also applied to a firm carrying out the activities in COB 4.3.19R (1)(a)-(c) with or on behalf of private customers.

COB 1.4.13 G
  1. (1)

    10The IMD minimum implementation provisions are the minimum provisions required for the implementation of articles 12 and 13 of the IMD.

  2. (2)

    The effect of COB 1.4.12 R is to apply these minimum provisions to firms in respect of their insurance mediation activities passported under the IMD if other EEA States have not implemented articles 12 and 13 of the IMD for those activities.

  3. (3)

    Firms are reminded that insurers have passporting rights under the Consolidated Life Directive but not under the IMD.