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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

COBS 1.1 General application

7

Designated investment business and long-term insurance business in relation to life policies

COBS 1.1.1 R RP

1This sourcebook applies to a firm with respect to the following activities carried on from an establishment maintained by it, or its appointed representative, in the United Kingdom:

  1. (1)

    [deleted]3

    3
  2. (2)

    designated investment business;

  3. (3)

    long-term insurance business in relation to life policies;

and activities connected with them.

Deposits (including structured deposits)

COBS 1.1.1A R RP

3This sourcebook applies7 to a firm with respect to activities7 carried on in relation to deposits7 from an establishment maintained by it, or its appointed representative, in the United Kingdom only as follows:7

6

7 Section / chapter

Application in relation to deposits

(1)

Rules in this sourcebook which implemented9 articles 24, 25, 26, 28 and 30 of MiFID (and related provisions of the MiFID Delegated Directive) (see COBS 1.1.1ADG)9.

A MiFID investment firm, a third country investment firm and a MiFID optional exemption firm when selling, or advising a client in relation to, a structured deposit.

(2)

COBS 4.6 (Past, simulated past and future performance)

Communication or approval of a financial promotion relating to a structured deposit that is addressed to, or disseminated in such a way that it is likely to be received by, a retail client.

(3)

COBS 4.7 (Direct offer financial promotions)

Communication or approval of a financial promotion relating to a cash deposit ISA, cash-only lifetime ISA or cash deposit CTF that is addressed to, or disseminated in such a way that it is likely to be received by, a retail client.

(4)

COBS 4.10 (Systems and controls and approving and communicating financial promotions)

To the extent that other rules in COBS 4 apply.

(5)

COBS 13 (Preparing product information)

Producing a cash-deposit ISA, cash-only lifetime ISA or cash-deposit CTF.

(6)

COBS 14 (Providing product information to clients)

Selling, personally recommending or arranging the sale of a cash-deposit ISA, cash-only lifetime ISA or cash-deposit CTF to a retail client.

(7)

COBS 15 (Cancellation)

A cancellable contract between a consumer and a firm.

Structured deposits: further provisions

COBS 1.1.1AA R

7Except in COBS 6.2B, in the rules referred to in COBS 1.1.1AR(1) (and in any related guidance), references to:

  1. (1)

    investment services and designated investment business include selling, or advising clients in relation to, structured deposits; and

  2. (2)

    financial instruments and designated investments include structured deposits.

COBS 1.1.1AB UK

9Article 1(2) of the MiFID Org Regulation specifies how its provisions should be read where they apply to firms selling, or advising on, structured deposits.

  1. 1(2) References to investment firms shall encompass credit institutions and references to financial instruments shall encompass structured deposits in relation to all the requirements (so far as relevant) in Chapters II to IV of this Regulation.

COBS 1.1.1AC R

7A third country investment firm and a MiFID optional exemption firm must also comply with the provisions of the MiFID Org Regulation which relate to the rules which implemented the9 articles of MiFID referred to in COBS 1.1.1AR(1)8, as modified by article 1(2) of the MiFID Org Regulation, when selling, or advising a client in relation to, a structured deposit.

COBS 1.1.1AD G

7The rules which implemented the9 provisions of MiFID and the MiFID Delegated Directive referred to in COBS 1.1.1AR(1)8 can be found in the chapters of COBS in the following table and are followed by a ‘Note:’.

7 COBS chapter

Description

COBS 2

Conduct of business obligations

COBS 3

Client categorisation

COBS 4

Communicating with clients, including financial promotions

COBS 6

Information about the firm, its services and remuneration

COBS 8A

Client agreements

COBS 9A

Suitability (MiFID provisions)

COBS 10A

Appropriateness (for non-advised services) (MiFID provisions)

COBS 11

Dealing and managing

COBS 14

Providing product information to clients

COBS 16A

Reporting information to clients (MiFID provisions)

7[Note: article 1(4) of MiFID]

Electronic money

COBS 1.1.1B R RP

4 COBS 4.4.3 R , COBS 5 (Distance communications), COBS 15.2 (The right to cancel), COBS 15.3 (Exercising a right to cancel), COBS 15.4 (Effects of cancellation) and COBS 15 Annex 1 (Exemptions from the right to cancel) apply to a firm with respect to the activity of issuing electronic money as set out in those provisions.

Application to TP firms and Gibraltar-based firms

COBS 1.1.1C R RP

10In addition to the application rules in COBS as relevant, TP firms and Gibraltar-based firms carrying on business from an establishment in the United Kingdom must also comply with the provisions in:

  1. (1)

    COBS 16.6.7AR10 (drawdown pensions: annual statements) and COBS 16.6.8R to COBS 16.6.13G (income withdrawals – annual statements);

  2. (2)

    COBS 19.1010 (Drawdown, investment pathways and cash warnings).

  3. (3)

    COBS TP 210 paragraphs 2.8G to 2.8J (Other Transitional Provisions)

COBS 1.1.1D G

10Unless the contrary intention appears, a reference to Gibraltar-based firm in COBS 1.1.1CR has the same meaning as in the Gibraltar Order.

Auction regulation bidding

COBS 1.1.1E R

11 COBS 5 (Distance communications) applies to a firm in relation to its carrying on of auction regulation bidding.

COBS 1.1.1C R RP

[deleted]9

5 7 7 7

Modifications to the general application rule

COBS 1.1.2 R RP

The application of this sourcebook7 is modified in COBS 1 Annex 1 according to the activities of a firm (Part 1) and2 its location (Part 2)2.

COBS 1.1.3 R RP

The application of this sourcebook7 is also modified in the chapters to this sourcebook for particular purposes, including those relating to the type of firm, its activities or location, and for purposes relating to connected activities.

Guidance

COBS 1.1.4 G RP

Guidance on the application provisions is in COBS 1 Annex 1 (Part 3).

COBS 1.1.5 G

9 PERG 13 contains general guidance on the persons and businesses to which the UK provisions which implemented MiFID apply.

COBS 1.1.6 G

9 PERG 16 contains general guidance on the businesses to which the UK provisions which implemented AIFMD apply. FUND 1 contains guidance on the types of AIFM.