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COBS 9.1 Application and purpose provisions

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Application

COBS 9.1.1RRP
COBS 9.1.1AG

4COBS 9A contains suitability requirements which apply in respect of a firm’s MiFID, equivalent third country or optional exemption business involving the provision of investment advice or portfolio management.

Providing basic advice on a stakeholder product

COBS 9.1.2RRP

If a firm makes a personal recommendation in relation to a stakeholder product, other than in the course of MiFID or equivalent third country business, it may choose to give basic advice under the rules in section 9.6 of this chapter instead of the rules in the remainder of this chapter.

P2P agreements

COBS 9.1.3RRP

[deleted]4

COBS 9.1.3AGRP

3This chapter does not apply to a firm which manages investments when that firm takes a decision to trade for a client and that decision relates to a P2P agreement. This is because the regulated activity of managing investments does not extend to the management of assets where those assets are P2P agreements.

COBS 9.1.4RRP

[deleted]4

Life policies for professional clients

COBS 9.1.5RRP

If the firm makes a personal recommendation to a professional client to take out a life policy, this chapter applies, but4 only those rules which implement the requirements of the Insurance Mediation Directive.

COBS 9.1.6GRP

If a rule implements a requirement of the Insurance Mediation Directive, a Note follows the rule indicating which provision is being implemented. COBS 7 (Insurance mediation) contains further rules implementing the Insurance Mediation Directive.

COBS 9.1.7GRP

The effect of these application rules and the fact that the Insurance Mediation Directive does not apply to an insurer (unless it is involved in mediation activities) is that this chapter does not apply to an insurer when it is making a personal recommendation to a professional client to take out a life policy.

Related rules

COBS 9.1.8GRP

For a firm making personal recommendations in relation to pensions, COBS 19 contains additional provisions relevant to assessing suitability and the contents of suitability reports.

COBS 9.1.9GRP

COBS 7 (Insurance mediation) contains requirements relating to the basis on which certain recommendations may be made, including requirements relating to fair analysis and range and scope.