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

COB 10.2 Application of general COB rules

Application or modification of general COB rules for operators

COB 10.2.1R

An operator when it is undertaking scheme management activity:

  1. (1)

    must comply with the rules specified in COB 10.2.5 R as modified by COB 10.2.3 R and in COB 10.2.5 R; and

  2. (2)

    need not comply with any other rule in COB.1

COB 10.2.2G

[deleted]

  1. (1)

    [deleted]

  2. (2)

    [deleted]21

General modifications

COB 10.2.3R

The rules specified in COB 10.2.5 R apply to an operator when it is undertaking scheme management activity (unless otherwise expressly provided in this chapter) with the following modifications:

  1. (1)

    subject to (3), references to customer are to be construed as references to any scheme in respect of which the operator is acting or intends to act, and with or for the benefit of which the relevant activity is to be carried on;

  2. (2)

    In the case of an unregulated collective investment scheme, references to terms of business or a client agreement are to be construed as references to the scheme documents of an unregulated collective investment scheme required by COB 10.6.2 R; and

  3. (3)

    in the case of an unregulated collective investment scheme, when an operator is required by the rules in COB to provide information to, or obtain consent from, a customer, the operator must ensure that the information is provided to, or consent obtained from, a participant or a potential participant in the scheme as the case may be.

COB 10.2.4G

Terms including the word customer such as customer order and current customer order are to be construed in accordance with COB 10.2.3 R.

COB 10.2.5R

Application of conduct of business rules

This table belongs to COB 10.2.1 R

Application of conduct of business rules

Chapter, Section or Rule

Description

Modifications

1

Application and general provisions

2.1

Clear, fair and not misleading communication

2.2

Inducements and soft commission

In the case of a regulated collective investment scheme, COB 2.2.8 R (5) and COB 2.2.16 R to COB 2.2.19R do not apply.3

2.3

Reliance on others

2.4

Chinese Walls

5.3

Suitability

COB 10.4 applies instead ofCOB 5.3.

7.1

Conflict of interest and material interest

7.2

Churning and switching

7.4

Customer order priority

7.5

Best execution

In the case of aregulated collective investment scheme, COB 7.5applies as if thescheme was a private customer. In the case of anunregulated collective investment scheme,COB 10.5.3 R applies instead ofCOB 7.5.4 R in the circumstances set out inCOB 10.5.3 R.2

7.6

Timely execution

7.7

Aggregation and allocation

COB 10.3.3 E applies instead ofCOB 7.7.6 E.COB 10.3.5 R applies instead ofCOB 7.7.14 R.

7.12

Customer order and execution records

10

Operators of collective investment schemes