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COBS 18.1 Trustee Firms

Application

COBS 18.1.1R
  1. (1)

    1This section applies to the MiFID or equivalent third country business carried on by a trustee firm.

  2. (2)

    It does not apply to a trustee firm when acting as:

    1. (a)

      a depositary; or

    2. (b)

      the trustee of a personal pension scheme or stakeholder pension scheme.

Application of COBS to trustee firms

COBS 18.1.2R

The provisions of COBS in the table do not apply to a trustee firm to which this section applies:

COBS

Description

26.1A

Adviser charging and remuneration

26.1B

Retail investment product provider requirements relating to adviser charging and remuneration

26.2A

Describing advice services

6.3

Disclosing information about services, fees and commission - packaged products

6.4

Disclosure of charges, remuneration and commission

9.4

Suitability reports

9.6

Special rules for providing basic advice on a stakeholder product

16.3.9

Guidance on contingent liability transaction

16.5

Quotations for surrender values

16.6

Life insurance contracts - communications to clients

16 Annex 1 R (1) 14

Information to be provided in accordance with COBS 16.2.1 R and 16.3

COBS 18.1.3G

The provisions of COBS in the table are unlikely to be relevant in relation to a trustee firm to which this section applies:

COBS

Description

5

Distance communications

13

Preparing product information

14.2

Providing product information

15

Cancellation

17

Claims handling for long-term care insurance

18.2

Energy market activity and oil market activity

18.3

Corporate finance business

18.4

Stock lending activity

19

Pensions - supplementary provisions

20

With-profits

Duties of trustee firms under the general law

COBS 18.1.4G

To the extent a rule in COBS applies to a trustee firm, that rule:

  1. (1)

    applies in addition to any duties or powers imposed or conferred upon a trustee by the general law; and

  2. (2)

    does not qualify or restrict the duties or powers that the general law imposes or confers upon a trustee; trustee firms will be under a duty to observe the provisions of their trust instrument; if its provisions conflict with any applicable rule, trustee firms will need to take advice in resolving the conflict.

Considering and complying with applicable COBS rules

COBS 18.1.5G

In considering and reaching decisions as to how applicable rules in COBS apply in the context of a particular trust arrangement, a trustee firm should consider the nature of that arrangement and the provisions of the relevant trust instrument.

References to "client" in applicable COBS rules

COBS 18.1.6G

Where an applicable rule in COBS requires the doing of any thing in relation to a client, the trustee firm should consider who, in the context of that rule and having regard to the particular trust arrangement, is the most appropriate person to treat as its client. This might, for example, be the beneficiary, another trustee or the trust, depending on the particular circumstances.