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COBS 3.8 Policies, procedures and records

Policies and procedures

COBS 3.8.1RRP

A firm must implement appropriate written internal policies and procedures to categorise its clients.

[Note: fourth paragraph of section II.2 of annex II to MiFID]

Records

COBS 3.8.2RRP

  1. (1)

    A firm must make a record of the form of each notice provided and each agreement entered into under this chapter. This record must be made at the time that standard form is first used and retained for the relevant period after the firm ceases to carry on business with clients who were provided with that form.

  2. (2)

    A firm must make a record in relation to each client of:

    1. (a)

      the categorisation established for the client under this chapter, including sufficient information to support that categorisation;

    2. (b)

      evidence of despatch to the client of any notice required under this chapter and if such notice differs from the relevant standard form, a copy of the actual notice provided; and

    3. (c)

      a copy of any agreement entered into with the client under this chapter.

    This record must be made at the time of categorisation and should be retained for the relevant period after the firm ceases to carry on business with or for that client.

  3. (3)

    The relevant periods are:

    1. (a)

      indefinitely, in relation to a pension transfer, pension conversion, 1pension opt-out or FSAVC;

    2. (b)

      at least five years, in relation to a life policy or pension contract;

    3. (c)

      five years in relation to MiFID or equivalent third country business; and

    4. (d)

      three years in any other case.

[Note: article 51(3) of the MiFID implementing Directive]

COBS 3.8.3GRP

If a firm provides the same form of notice to more than one client, it need not maintain a separate copy of it for each client, provided it keeps evidence of despatch of the notice to each client.