Content Options

View Options

Status: You are viewing the version of the handbook as on 2019-12-18.

COBS 2.2A Information disclosure before providing services (MiFID and insurance distribution provisions)

Application

COBS 2.2A.1R

1This section applies to a firm:2

  1. (1)

    in relation to its MiFID, equivalent third country or optional exemption business;2

  2. (2)

    carrying on insurance distribution activities in relation to:2

    1. (a)

      an insurance-based investment product for any client; and/or2

    2. (b)

      any other life policy for a retail client but as regards the matters in COBS 2.2A.2R(1)(a) and (d) only.2

Information disclosure in good time

COBS 2.2A.2R
  1. (1)

    A firm must provide appropriate information in good time to a client with regard to:

    1. (a)

      the firm and its services;

    2. (b)

      (for financial instruments)2 the financial instruments,2 proposed investment strategies and execution venues2;

    3. (c)

      (for insurance-based investment products) the distribution of insurance-based investment products including at least appropriate guidance on, and warnings of, the risks associated with the insurance-based investment product or in respect of particular investment strategies proposed2; and

    4. (d)

      all costs and related charges.

[Note: article 24(4) of MiFID and article 29(1)(b) of the IDD2]

  1. (2)

    That information may be provided in a standardised format.

COBS 2.2A.2AR

2For an insurance-based investment product, a firm must provide the information in good time prior to the conclusion of the contract.

[Note: first paragraph of article 29(1) of the IDD]2

COBS 2.2A.3R
  1. (1)

    A firm must provide the information required by this section in a comprehensible form in such a manner that a client is reasonably able to understand the nature and risks of the investment service and of the specific type of financial instrument or life policy2 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.

[Note: article 24(5) of MiFID and last paragraph of article 29(1) the IDD2]

Related rules

COBS 2.2A.4G

A firm to which the rule on providing appropriate information (COBS 2.2A.2R) applies should also consider the rules on disclosing information about a firm, its services, costs and associated charges, financial instruments and life policies2 COBS 6.1ZA, COBS 9A.3, COBS 14.32 and COBS 14.3A.

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

COBS 2.2A.5R

A firm must comply with the rule in COBS 2.2.3R (Disclosure of commitment to the Financial Reporting Council’s Stewardship Code).