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COB 2.3 Reliance on others

Application

COB 2.3.1R

This section applies to a firm when it is conducting designated investment business or activities in connection with designated investment business.

Purpose

COB 2.3.2G

Principle 2 requires a firm to conduct its business with due skill, care and diligence. This section indicates the extent to which firms can meet this requirement by relying on others.

Reliance on others

COB 2.3.3R

A firm will be taken to be in compliance with any rule in COB that requires a firm to obtain information to the extent that the firm can show that it was reasonable for the firm to rely on information provided to it in writing by another person.

COB 2.3.4E
  1. (1)

    In relying on COB 2.3.3 R, a firm should take reasonable steps to establish that the other person providing written information is:

    1. (a)

      not connected with the firm; and

    2. (b)

      competent to provide the information.

  2. (2)

    Compliance with (1) may be relied on as tending to establish compliance with COB 2.3.3 R.

  3. (3)

    Contravention of (1) may be relied on as tending to establish contravention of COB 2.3.3 R.

COB 2.3.5G

A firm may generally rely on any information provided to the firm in writing by:

  1. (1)

    an unconnected authorised person; or

  2. (2)

    a professional firm;

unless the firm is aware, or ought reasonably to be aware, of any fact, or facts, that would give reasonable grounds to question the accuracy of any such information.

COB 2.3.6R
  1. (1)

    Any information which a rule in COB or in CASS requires to be sent to a customer may be sent to another person on the instruction of the customer, so long as the recipient is not connected with the firm. 1

  2. (2)

    There is no need for a firm to send information to a customer where it has taken reasonable steps to establish that this has been or will be supplied by another person.