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COBS 2.2 Information disclosure before providing services (non-MiFID provisions)

Application

COBS 2.2.-1RRP
  1. (1)

    [deleted]5

    1
  2. (2)

    This section applies in relation to5 designated investment business other than MiFID, equivalent third country or optional exemption business5, carried on for a retail client:

    1. (a)

      in relation to a derivative, a warrant, a non-readily realisable security, a P2P agreement,4 or stock lending activity, but as regards the matters in COBS 2.2.1R (1)(b) only; and

    2. (b)

      in relation to a retail investment product2, but as regards the matters in COBS 2.2.1R (1)(a) and (d) only.

      2
COBS 2.2.-1AG

5COBS 2.2A (Information disclosure before providing services (MiFID provisions)) contains the information disclosure requirements applying to a firm carrying on MiFID, equivalent third country or optional exemption business.

1

Information disclosure before providing services

COBS 2.2.1RRP
  1. (1)

    A firm must provide appropriate information in a comprehensible form to a client about:

    1. (a)

      the firm and its services;

    2. (b)

      designated investments and proposed investment strategies; including appropriate guidance on and warnings of the risks associated with investments in those designated investments or in respect of particular investment strategies;

    3. (c)

      execution venues; and

    4. (d)

      costs and associated charges;

    so that the client is reasonably able to understand the nature and risks of the service and of the specific type of designated investment that is being offered and, consequently, to take investment decisions on an informed basis.

  2. (2)

    That information may be provided in a standardised format.

  3. (3)

    [deleted]1

    1
  4. (4)

    [deleted]1

    1
COBS 2.2.2GRP

A firm to which the rule on providing appropriate information (COBS 2.2.1 R) applies should also consider the rules on disclosing information about a firm, its services, costs and associated charges and designated investments in COBS 6.1 and COBS 14.

Disclosure of commitment to the Financial Reporting Council’s Stewardship Code

COBS 2.2.3RRP

3A firm, other than a venture capital firm, which is managing investments for a professional client that is not a natural person must disclose clearly on its website, or if it does not have a website in another accessible form:

  1. (1)

    the nature of its commitment to the Financial Reporting Council’s Stewardship Code; or

  2. (2)

    where it does not commit to the Code, its alternative investment strategy.