COBS 18.11 1Authorised professional firms

COBS 18.11.1 R RP

1 COBS applies to an authorised professional firm, except that its application in relation to non-mainstream regulated activities and financial promotion is modified as set out below.

COBS 18.11.1A G

2In certain respects, the application of COBS to an authorised professional firm will be determined by the firm’s status as a MiFID investment firm, a MiFID optional exemption firm or a firm to which MiFID does not apply.

COBS 18.11.2 R RP

COBS does not apply to an authorised professional firm with respect to its non-mainstream regulated activities, except that:

  1. (1)

    the fair, clear and not misleading rule applies;

  2. (2)

    the financial promotion rules apply as modified below;

  3. (3)

    the rules in the following parts of COBS which implement the IDD apply in relation to insurance distribution activities:3

    1. (a)

      COBS 2.1.1R, COBS 2.2A and COBS 2.3A (Conduct of business obligations);3

    2. (b)

      COBS 4 (Communicating with clients, including financial promotions);3

    3. (c)

      COBS 6.1ZA (Information about the firm and compensation information (MiFID and insurance distribution provisions));3

    4. (d)

      COBS 7 (Insurance distribution);3

    5. (e)

      COBS 8 (Client agreements);3

    6. (f)

      COBS 9 (Suitability (including basic advice) (other than MiFID and insurance-based investment products provisions)) and COBS 9A (Suitability (MiFID and insurance-based investment products provisions));3

    7. (g)

      COBS 10A (Appropriateness (for non-advised services));3

    8. (h)

      COBS 14.2 (Providing product information to clients); and3

    9. (i)

      COBS 16A.2 (General client reporting and record keeping requirements),

    but only if the designated professional body of the firm does not have rules approved by the FCA under section 332(5) of the Act that implement articles 1(4), 17, 18, 19, 20, 23, 24(1) to (4) and (6), 29, and 30 of the IDD3 and that apply to the firm;

    1
  4. (4)

    COBS 8.1.3 R (Client agreements) applies, except for the requirement to provide information on conflicts of interest; and1

    1
  5. (5)

    COBS 5.2 (E-commerce) applies.1

COBS 18.11.2A G

3For COBS 18.11.2R(3) if a rule implements a requirement of the IDD, a note (“Note:”) follows the rule indicating which provision is being implemented.

COBS 18.11.3 R RP

The financial promotion rules do not apply to an authorised professional firm in relation to the communication of a financial promotion if:

  1. (1)

    the firm's main business is the practice of its profession (see IPRU(INV) 2.1.2R(3));

  2. (2)

    the financial promotion is made for the purposes of and incidental to the promotion or provision by the firm of its professional services or its non-mainstream regulated activities; and

  3. (3)

    the financial promotion is not communicated on behalf of another person who would not be able lawfully to communicate the financial promotion if he were acting in the course of business;

however, a firm may use the exemptions for promoting unregulated collective investment schemes in COBS 4 (Communicating with clients, including financial promotions) if it wishes.

COBS 18.11.4 G RP

The rules on approvingfinancial promotions continue to apply.