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COBS 1.1 The general application rule

[Note: ESMA has issued guidelines under article 16(3) of the ESMA Regulation on certain aspects of the MiFID suitability requirements which also includes guidelines on conduct of business obligations. See https://www.esma.europa.eu/sites/default/files/library/2015/11/2012-387_en.pdf.]

COBS 1.1.1R

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.

COBS 1.1.1AR

3This sourcebook does not apply to a firm with respect to the activity of accepting deposits carried on from an establishment maintained by it, or its appointed representative, in the United Kingdom, except for COBS 4.6 (Past, simulated past and future performance), COBS 4.7.1 R (Direct offer financial promotions), COBS 4.10 (Systems and controls and approving and communicating financial promotions), COBS 13 (Preparing product information) and COBS 14 (Providing product information to clients) which apply as set out in those provisions, COBS 4.1 and the Banking: Conduct of Business sourcebook (BCOBS).

COBS 1.1.1BR

4COBS 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.

COBS 1.1.1CR

5The following rules in COBS apply to a firm in relation to its carrying on of auction regulation bidding:

  1. (1)

    COBS 5 (Distance communications);

  2. (2)

    (for a firm that has exercised an opt-in to CASS in accordance with CASS 1.4.9 R in relation only to those clients for which it holds client money or safe custody assets in accordance with CASS) COBS 3 (Client categorisation), COBS 6.1.7 R (Information concerning safeguarding of designated investments belonging to clients and client money), COBS 6.1.11 R (Timing of disclosure) and COBS 16.4 (Statements of client designated investments or client money).

Modifications to the general application rule

COBS 1.1.2R

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

COBS 1.1.3R

The general rule 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 1.1.4G

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