COBS Sch 1 Record keeping requirements

COBS Sch 1.1G

1The aim of the guidance in the following table is to give the reader a quick overall view of the relevant record keeping requirements.

COBS Sch 1.2G

It is not a complete statement of those requirements and should not be relied on as if it were.

COBS Sch 1.2AG
14
  1. (1)

    A MiFID investment firm, third country investment firm or MiFID optional exemption firm should refer to the requirements on record keeping in the MiFID Org Regulation and SYSC 9. In particular, Annex I to the MiFID Org Regulation contains a minimum list of records to be kept by those firms to which it applies.18

[Note: article 72 of the MiFID Org Regulation]

  1. (2)

    An insurance distributor should refer to the requirements on record keeping in the IDD Regulation and in SYSC 3 (for insurers and managing agents) or SYSC 9 (for other firms).18

[Note: article 19 of the IDD Regulation]18

COBS Sch 1.3G

Handbook reference

Subject of record

Contents of record

When record must be made

Retention period

COBS 2.3.17R (1)

Information disclosed to the client in accordance with COBS 2.3.1R (2)(b)2

2

The information disclosed2

2

When information is disclosed2

2

5 years from date information is given2

2

COBS 2.3.17R (2)

Each benefit given to another firm which does not have to be disclosed to the client in accordance with COBS 2.3.1R (2)(b)(ii)2

2

Each benefit given2

2

When benefit is given

5 years from date of benefit

14COBS 2.3A.19R (5)(f)(iv)16

Trial periods of research received in accordance with COBS 2.3A.19R (5)(f)16.

Dates of any trial periods, and sufficient records to demonstrate compliance with the conditions in COBS 2.3A.19R(5)(f)(i) to (iii)16.

When the trial period is received

14COBS 2.3A.32R

Evidence that any fees, commissions and non-monetary benefits paid or received are designed to enhance the quality of the relevant service to the client

(1) List of all fees, commissions and non-monetary benefits received; and

(2) record of how any fees, commissions or non-monetary benefits enhance the quality of the services provided and the steps taken in order not to impair compliance with the duty to act honestly, fairly and professionally in the best interests of the client

When the relevant fee, commission or non-monetary benefit is paid or received

Not specified

14COBS 2.3B.11R

Audit trail in relation to the operation of any research payment accounts

(1) Payments made to research providers; and

(2) how the amounts paid were determined

When a payment for research is made

Not specified

14COBS 2.3B.20R

Summary details in relation to the operation of a research payment account

A summary of:

(1) the providers paid from the account;

(2) the total amount paid over a defined period;

(3) the benefits and services received; and

(4) how the total amount spent compares to the budget

From when the research payment account is established

Not specified

COBS 3.8.2 R (1)

Standard form notice to clients and agreements under COBS 3

Each standard form notice and agreement

When standard form is first used

Relevant period from when the firm ceases to carry on business with clients under that standard form (see COBS 3.8.2 R (3))

COBS 3.8.2 R (2)

Client categorisation

Client categorisation and supporting information, evidence of dispatch to client of any notice (the notice itself where this differs from standard form) and a copy of any agreement entered into

From time of categorisation

Relevant period from when the firm ceases to carry on business with or for that client (see COBS 3.8.2 R (3))

COBS 4.11.1R (1)

Financial promotion

A financial promotion communicated or approved (subject to exemptions)

When communicated or approved

See COBS 4.11.1R (3)

COBS 4.11.1R (2)

Telemarketing scripts

Copy of any script used

Date script used

See COBS 4.11.1R (3)7

7COBS 4.11.1R (2A)

Non-mainstream pooled investments: certification of compliance

  • Certification by the person allocated the compliance oversight function or employees of the firm reporting to and supervised by that person confirming that the financial promotion is compliant with the restrictions in section 238 of the Act and COBS 4.12.3 R, as applicable.
  • Which exemption applies and the reason why that exemption applies. Where the exemption requires a certificate, investor statement, warning or indication, a copy of that certificate, investment statement, warning or indication.

  • Date of certification
  • Date the invitation or inducement 8is communicated or approved8

COBS 4.11.2 G

Compliance of financial promotions

Firms encouraged to consider recording why a financial promotion is considered compliant.

Date of assessment of compliance

4

14COBS 6.1A.5AR (2)(e)(vi)(D)

Trial periods of research received in accordance with COBS 6.1A.5AR(2)(e)(vi)

Dates of any trial periods, and sufficient records to demonstrate compliance with the conditions in COBS 6.1A.5AR(2)(e)(vi)(A) to (C)

When the trial period is received

4COBS 6.1A.27 R

Adviser charging and remuneration

(1) the firm's charging structure;

(2) the total adviser charge payable by each retail client; (3) if the total adviser charge paid by a retail client has varied materially from the charge indicated for that service in the firm's charging structure, the reasons for that difference.

(1) when the charging structure is first used; (2) from the date of disclosure; (3) from the date of disclosure;

See COBS 6.1A.27R (1) to (3)4

5COBS 6.1C.21 R

Consultancy charging and remuneration

(1) the firm's charging structure;

(2) the total consultancy charge payable by each employer.

(3) if the total consultancy charge for a particular service has varied materially from that indicated in the firm's charging structure, the reasons for that difference.

(1) when the charging structure is first used;

(2) from the date of disclosure;

See COBS 6.1C.21 R

14

14

14

14

14

COBS 8.1.4 R

Client agreements (non-MiFID provisions)14

Documents setting out rights and obligations of the firm and the client

From date of agreement

At least14 the duration of the relationship with the client unless the record relates14 to a pension transfer, pension conversion, 11 pension opt-out or FSAVC in which case it14 must be retained indefinitely

14COBS 8A.1.9R

Client agreements (MiFID provisions)

Documents setting out rights and obligations of the firm and the client

From date of agreement

At least the duration of the relationship with the client

COBS 9.2.9 R

Recommendations on friendly society life policies.

Why the recommendation is considered suitable

Date of recommendation.

5 years.

COBS 9.5.1 G

Suitability (non-MiFID provisions)14

Client information for suitability report14

From date of suitability report

See COBS 9.5.2 R.

COBS 9.6.19 R

Basic advice

Decision to give basic advice, range used and basic advice summary prepared for retail client

Date on which basic advice given

5 years

COBS 9.6.20 R

Scope of basic advice (stakeholder products)

Scope of basic advice and its range (or ranges) of stakeholder products

Date on which the scope and range becomes relevant

5 years from the date replaced by more up-to-date record

14COBS 9A.4.1G

Suitability (MiFID provisions)

Client information for suitability report

From date of suitability report

At least 5 years

18COBS 9A.4.3EU

Suitability (insurance-based investment products)

Client information for suitability report - details in COBS 9A.4.3EU and COBS 9A.4.4EU

From date of suitability report

For whichever is the longer of 5 years or the duration of the relationship with the client

COBS 10.7.1 G

Appropriateness (non-MiFID provisions)14

Client information obtained in making assessment of appropriateness and the appropriateness assessment

Date of assessment

At least14 5 years

14COBS 10A.7.2EU

Appropriateness (MiFID provisions)

Records of appropriateness assessments including the results of such assessments and any warnings given to clients

Date of assessment

At least 5 years

18COBS 10A.7.2AEU

Appropriateness (insurance-based investment products)

Records of appropriateness assessments including the results of such assessments and any warnings given to clients - details in COBS 10A.7.2A

Date of assessment

For whichever is the longer of 5 years or the duration of the relationship with the client

14

14

14

14

14

14

14

14

14

14

14

14

14

14

14

14

14

14

14

14

14COBS 11.5A.4EU

Client orders

Initial orders from clients and decisions to deal

Immediately

At least 5 years

14COBS 11.5A.5EU

Client orders

Transactions and order processing

Immediately

At least 5 years

14

14

14

14

14

COBS 11.7.4 R

Personal account dealing

Notifications by outsourcing provider and authorisation or prohibition.

Date of notification or decision.

5 years

14COBS 11.7A.5EU

Personal account dealing (MiFID provisions)

A record of any personal transaction notified or identified, including any authorisation or prohibition

Date of notification, identification or decision

At least 5 years

15COBS 11A.1.4BR(3)(c)

The firm’s assessment under COBS 11A.1.4BR(3)(a)

1) The firm’s process for conducting the assessment and reaching the opinion under COBS 11A.1.4BR (3)(a);

(2) the firm’s staff that were involved in reaching that opinion; and

(3) an explanation of the firm’s consideration of the number and expertise of the unconnected analysts included in the range.

Once the firm has formed its opinion under COBS 11A.1.4BR (3)(a)

5 years

15COBS 11A.1.4CR

Restrictions on unconnected analysts

Any restrictions that would be imposed on each unconnected analyst that accepts the opportunity under COBS 11A.1.4BR(2)

When the opportunity is communicated to the range of unconnected analysts

5 years

15COBS 11A.1.4ER

Information given by the issuer team during the relevant period under COBS 11A.1.4BR(2)(b)(iv)

(1) The information on the issuer or the relevant securities that is given by the issuer team to the firm’s analysts during the relevant period under COBS 11A.1.4BR(2)(b)(iv); and

(2) the information on the issuer or the relevant securities that is given by the issuer team to each of the range of unconnected analysts during the same period.

At the end of the relevant period under COBS 11A.1.4BR(2)(b)(iv)

5 years

14

3

14

14

14

14

14COBS 11A.1.9EU

Underwriting and placing

Content and timing of instructions received from clients and allocation decisions

Date of receipt of instructions or of allocation decision

5 years

13

COBS 15.3.4 R

Cancellation: exercise of right

Exercise of the right to cancel or withdraw

Date of exercise

As specified in COBS 15.3.4 R(1), (2) and (3)

COBS 16.2.7 R

Confirmation to clients (non-MiFID provisions)14

Copy of a confirmation

From date of despatch to client

At least 3 years14

COBS 16.3.11 R

Periodic statements (non-MiFID provisions)14

A copy of a periodic statement sent to a client

From date of despatch to client

At least 3 years14

14COBS 16A.3.1EU

Confirmation to clients (MiFID provisions)

A copy of a confirmation

From date of despatch to client

At least 5 years

14COBS 16A.4.1EU

Periodic statements (MiFID provisions)

A copy of a periodic statement sent to a client

From date of despatch to client

At least 5 years

18COBS 16A.4.2EU

Periodic statements (insurance-based investment products)

A copy of a periodic statement sent to a client

From date of despatch to client

At least 5 years

COBS 16.6.6 R

Life insurance contracts

Information to be provided during the terms of the contract

When information is given

5 years after information given

COBS 18.5.14 R

Residual CIS operators and small authorised UK AIFMs of an unauthorised AIF9

9

Periodic statement to be provided to participants

When provided

3 years

14COBS 18 Annex 2 2.1R

Client orders and decisions to deal in portfolio management

Orders received from clients and decisions taken - details in COBS 18 Annex 2 2.1R(2)

Immediately

5 years

14COBS 18 Annex 2 3.1R

Client orders

Execution of orders

Immediately after executing a client order, or, in the case of firms that transmit orders to another person for execution, immediately after receiving confirmation that an order has been executed

5 years

14COBS 18 Annex 2 3.2R

Client orders

Transmission details (see COBS 18 Annex 2 3.2R)

Immediately on transmitting an order to another person for execution

5 years

COBS 19.1.7CR17

Execution only pension transfer or opt out

That no personal recommendation was given to the client

Date of transaction

Indefinitely17

COBS 19.2.3 R

Promotion of personal pension scheme

Why the promotion was justified

When promoted

5 years610

10COBS 20.2.34AR (1)(a)(i)

Support assets outside the with-profits fund

Precise terms and conditions on which support assets operate and are available including whether and when they are repayable

When a firm first has support assets outside the with-profits fund

Until the firm ceases to use support assets outside the with-profits fund

6COBS 20.2.36A R

strategic investments

A description of the strategic purpose for which a strategic investment has been purchased or retained

Before making a strategic investment or when reviewing whether to retain a strategic investment

Until the firm ceases to hold the strategic investment in question

COBS 20.3.1 R

PPFMs

Each version of the PPFM

Date on which the PPFM is relevant

5 years

12COBS 22.2.6 R

Retail distribution of mutual society shares

Information and evidence demonstrating compliance with the requirements of COBS 22.2

At or near the time of the sale to a retail client

5 years for MiFID or equivalent third country business and 3 years for other business

12COBS 22.3.5 R

Retail distribution of contingent convertible instruments and CoCo funds

Information and evidence demonstrating compliance with the restrictions in COBS 22.3

At or near the time of the sale or communication or approval of a promotion to a retail client

5 years for MiFID or equivalent third country business and 3 years for other business

COBS TP 1

Client categorisation transitional

Categorisation or re-categorisation under TP1

Date of categorisation/ re-categorisation

See COBS 3.8.2 R (2)

COBS TP 2

Investment research transitional

Election to comply with COBS 12.2 - COBS 12.3 sooner than 1 May 2008

Date of decision and date from which election is to be effective

5 years

COBS TP 2

Specialist regimes

Election to comply with COBS 18 sooner than 1 May 2008

Date of decision and date from which election is to be effective

5 years