Related provisions for COBS 9.4.8

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COBS 13.2.1GRP
1When a firm prepares documents or information in accordance with this chapter, the firm should consider the rules on providing product information (COBS 14). Those rules require a firm to provide the product information in a durable medium or via a website that meets the website conditions (if the website is not a durable medium). [Note: article 29(4) of the MiFID implementing Directive]
3When a firm prepares documents or information for a life policy, personal pension or stakeholder pension in accordance with this chapter, the firm should: (1) consider the rules on communicating with clients (COBS 4). Those rules require a firm to ensure that a communication is fair, clear and not misleading. In particular, a firm should:(a) take into account its target market's understanding of financial services when preparing documents and information;(b) present information
COBS 13.2.2RRP
A key features document and a key features illustration2must also:(1) (if it is a key features document) 2be produced and presented to at least the same quality and standard as the sales or marketing material used to promote the relevant product;(2) (if it is a key features document) 2display the firm's brand at least as prominently as any other;(3) (if it is a key features document or a key features illustration which does not form an integral part of the key features document)
COBS 13.2.3GRP
The Solvency II Directive information4 can be included in a key features document, a key features illustration2or any other document.4
COBS 13.2.4RRP
The documents and information prepared in accordance with the rules in this chapter must not include anything that might reasonably cause a retail client to be mistaken about the identity of the firm that produced, or will produce, the product.
COBS 20.1.1RRP
1This chapter applies to a firm carrying on with-profits business, except to the extent modified in the following rules.
COBS 20.1.2RRP
(1) The section on the process for reattribution (COBS 20.2.42 R to COBS 20.2.52 G):(a) applies to a firm that is proposing to make a reattribution of its inherited estate;(b) but not if, and to the extent that, it would require the firm to breach, or would prevent the firm from complying with, an order made by a court of competent jurisdiction.(2) If a firm proposes to seek an order from a court of competent jurisdiction that would allow or require it to act in a way that is
COBS 20.1.3RRP
For an EEA insurer:(1) 4(a) the rules and guidance on the with-profits fund (COBS 20.1A), on treating with-profits policyholders fairly (COBS 20.2.1 G to COBS 20.2.41 G and COBS 20.2.53 R to COBS 20.2.60 G), and the governance provisions in COBS 20.5. apply only in so far as responsibility for the matter in question has not been reserved to the firm'sHome State regulator by an EU instrument;4notwithstanding the above: (b) COBS 20.2.26A R (financial penalties and the with-profits
COBS 20.1.4RRP
The following do not apply to a non-directive friendly society:(1) COBS 20.3 (Principles and Practices of Financial Management);3(2) COBS 20.4 (Communications with with-profits policyholders); and3(3) COBS 20.5 (With-profits governance).3
COBS 20.1.5RRP
This chapter does not apply to with-profits business that consists of effecting or carrying out Holloway sickness policies.
COBS 20.3.1RRP
(1) A firm must:(a) establish and maintain the PPFM according to which its with-profits business is conducted (or, if appropriate, separate PPFM for each with-profits fund); and(b) retain a record of each version of its PPFM for five years.(2) A firm'swith-profits principles must:(a) be enduring statements of the standards it adopts in managing with-profits funds; and(b) describe the business model it uses to meet its duties to with-profits policyholders and to respond to longer-term
COBS 20.3.4RRP
A firm'sPPFM must cover the issues set out in the table in COBS 20.3.6 R.
COBS 20.3.5RRP
A firm'sPPFM must cover any matter that has, or it is reasonably foreseeable may have, a significant impact on the firm's management of with-profits funds, including but not limited to:(1) any requirements or constraints that apply as a result of previous dealings, including previous business transfer schemes;3(2) the nature and extent of any shareholder or other3 commitment to support the with-profits fund; and3(3) the precise terms and conditions of support asset arrangements,
COBS 20.3.6RRP
Table: Issues to be covered in PPFMSubjectIssues(1)Amount payable under a with-profits policy(a)Methods used to guide determination of the amount that is appropriate to pay individual with-profits policyholders, including:(i)the aims of the methods and approximations used;(ii)how the current methods, including any relevant historical assumptions used and any systems maintained to deliver results of particular methods, are documented; and(iii)the procedures for changing the current
COBS 20.3.7GRP
The table in COBS 20.3.8 G sets out guidance on how various information relevant to some of the issues covered in a firm'sPPFM (COBS 20.3.6 R) might be split between with-profits principles and with-profits practices. This is an example of the matters a firm should address in its with-profits principles and with-profits practices and is not exhaustive. A firm should consider carefully the scope and content of its PPFM as appropriate.
COBS 20.3.8GRP
Table: Guidance on with-profits principles and practicesReference to PPFM issues (COBS 20.3.6R)With-profits principlesWith-profits practices(1) Amount payable under a with-profits policyGeneral(a) Circumstances under which any historical assumptions or parameters, relevant to methods used to determine the amount payable, may be changed;General(e) For each major class of with-profits policy, methods establishing the main assumptions or parameters that decide the output of methods
COBS 2.2.-1RRP
(1) 1This section applies in relation to MiFID or equivalent third country business.(2) This section applies in relation to other designated investment business carried on for a retail client: (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 (b) in relation to a retail investment product2, but as regards the matters in COBS 2.2.1R (1)(a) and (d)
(1) A firm must provide appropriate information in a comprehensible form to a client about:(a) the firm and its services;(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;(c) execution venues; and(d) costs and associated charges;so that the client is reasonably able to understand the nature and risks
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.
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) the nature of its commitment to the Financial Reporting Council’s Stewardship Code; or(2) where it does not commit to the Code, its alternative investment strategy.
COBS 15.2.1RRP
A consumer has a right to cancel any of the following contracts with a firm:Cancellable contractCancellation periodSupplementary provisionsLife and pensions:• a life policy (including a pension annuity, a pension policy or within a wrapper)• a contract to join a personal pension scheme or a stakeholder pension scheme• a pension contract• a contract for a pension transfer• a contract to vary an existing personal pension scheme or stakeholder pension scheme by exercising, for the
COBS 15.2.2GRP
(1) If the same transaction attracts more than one right to cancel, the firm should apply the longest cancellation period applicable.(2) A firm may provide longer or additional cancellation rights voluntarily, but if it does these should be on terms at least as favourable to the consumer as those in this chapter, unless the differences are clearly explained.(3) If the right to cancel applies to a wrapper or pension wrapper and underlying investments, the firm may give the consumer
COBS 15.2.3RRP
The cancellation period begins:(1) either from the day of the conclusion of the contract, except in respect of contracts relating to life policies where the time limit will begin from the time when the consumer is informed that the contract has been concluded; or(2) from the day on which the consumer receives the contractual terms and conditions and any other pre-contractual information required under this sourcebook, if that is later than the date referred to above. [Note: article186
COBS 15.2.4GRP
If a firm does not give a consumer the required information about the right to cancel and other matters, the contract remains cancellable and the consumer will not be liable for any shortfall.
COBS 15.2.5RRP
(1) The firm must disclose to the consumer:(a) in good time before or, if that is not possible, immediately after the consumer is bound by a contract that attracts a right to cancel or withdraw; and(b) in a durable medium;the existence of the right to cancel or withdraw, its duration and the conditions for exercising it including information on the amount which the consumer may be required to pay, the consequences of not exercising it and practical instructions for exercising
COBS 18.3.1RRP
The provisions of COBS in the table do not apply in respect of any corporate finance business carried on by a firm which is MiFID or equivalent third country business:COBSDescription36.1AAdviser charging and remuneration36.1BRetail investment product provider requirements relating to adviser charging and remuneration36.2ADescribing advice services6.3Disclosing information about services, fees and commission - packaged products6.4Disclosure of charges, remuneration and commission9.4Suitability
COBS 18.3.2GRP
The provisions of COBS in the table are unlikely to be relevant to any corporate finance business carried on by a firm which is MiFID or equivalent third country business:COBSDescription 5Distance communications, except in relation to distance contracts concluded with consumers7Insurance mediation13Preparing product information14.2Providing product information 15Cancellation, except cancellation and withdrawal rights in relation to distance contracts concluded with consumers17Claims
COBS 18.3.4GRP
COBS 15 (Cancellation) is likely to be of limited application to corporate finance business. Distance contracts concluded with consumers in the course of corporate finance business will be exempt from COBS 15 if the price of the financial service is dependent on fluctuations in the financial market outside the firm's control.
COBS 12.1.1GRP
1The purpose of this chapter is to:2(1) 2set out specific requirements 2relating to the production and dissemination of investment research and non-independent research; and(2) implementing the provisions of 2the Market Abuse Directive relating to the disclosures to be made in, and about, research recommendations
COBS 12.1.2RRP
This chapter applies 2to a firm.2(1) 2[deleted](2) 2[deleted]
COBS 12.1.3GRP
The EEA territorial scope rule modifies the general rule of application to the extent necessary to be compatible with European law (see paragraph 1.1 of Part 2 of COBS 1 Annex 1). This means that COBS 12.2 and COBS 12.3.4 G also apply to passported activities carried on by a UKMiFID investment firm from a branch in another EEA state, but do not apply to the United Kingdombranch of an EEAMiFID investment firm in relation to its MiFID business.
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]
(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) A firm must make a record in relation to each client of:(a) the categorisation established for the client under this chapter, including sufficient information to support
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.
A3firm to which SYSC 9 applies 3is required to keep orderly records of its business and internal organisation (see SYSC 9, General rules on record-keeping). Other firms are 3 required to take reasonable care to establish and maintain such systems and controls as are appropriate to their 3business (see SYSC 3, Systems and controls). The records may be expected to reflect the different effect of the rules in this chapter depending on whether the client is a retail client or a professional
A1firm must retain its records relating to suitability for a minimum of the following periods:(1) if relating to a pension transfer, pension conversion, 4pension opt-out or FSAVC, indefinitely;(2) if relating to a life policy,2personal pension scheme2or stakeholder pension scheme, five years;(3) if relating to MiFID or equivalent third country business, five years; and(4) in any other case, three years.
A firm need not retain its records relating to suitability if:(1) the client does not proceed with the recommendation; and(2) they do not relate to MiFID or equivalent third country business.
COBS 17.1.1RRP
1When an insurer or managing agent receives a claim under a long-term care insurance contract, it must respond promptly by providing the policyholder, or the person acting on the policyholder's behalf, with:(1) a claim form (if it requires one to be completed);(2) a summary of its claims handling procedure; and(3) appropriate information about the medical criteria that must be met, and any waiting periods that apply, under the terms of the policy.
COBS 17.1.2RRP
As soon as reasonably practicable after receipt of a claim, the insurer or managing agent must tell the policyholder, or the person acting on the policyholder's behalf:(1) (for each part of the claim it accepts), whether the claim will be settled by paying the policyholder, providing goods or services to the policyholder or paying another person to provide those goods or services; and(2) (for each part of the claim it rejects), why the claim has been rejected and whether any future
COBS 17.1.3RRP
An insurer and a managing agent must not:(1) unreasonably reject a claim; or(2) except where there is evidence of fraud, reject a claim for:(a) non-disclosure of a fact material to the risk which the policyholder could not reasonably have been expected to disclose; or(b) misrepresentation of a fact material to the risk, unless the misrepresentation is negligent; or(c) breach of warranty, unless the circumstances of the claim are connected to the breach, the warranty is material to
COBS 14.4.10RRP
If an intermediate Unitholder receives a reasonable request from an authorised fund manager for information relating to the beneficial owners of the units of a scheme that it operates which the authorised fund manager reasonably needs for the purposes of liquidity management, the intermediate Unitholder must provide that information to the authorised fund manager as soon as is reasonably practicable.
COBS 14.4.11GRP
Examples of information which may be reasonably requested by an authorised fund manager include:(1) a breakdown of the total number of units held by the intermediate Unitholder in each scheme to indicate the number of units attributable to individual beneficial owners; and(2) information about the types of distribution channel which have been used to sell the units to the relevant beneficial owners.
COBS 14.4.12GRP
In determining whether a request from an authorised fund manager is reasonable, an intermediate Unitholder may take into account the frequency with which such requests have been received from that authorised fund manager.
COBS 10.3.1RRP
(1) If a firm considers, on the basis of the information received to enable it to assess appropriateness, that the product or service is not appropriate to the client, the firm must warn the client.(2) This warning may be provided in a standardised format. [Note: article 19(5) of MiFID]
COBS 10.3.2RRP
(1) If the client elects not to provide the information to enable the firm to assess appropriateness, or if he provides insufficient information regarding his knowledge and experience, the firm must warn the client that such a decision will not allow the firm to determine whether the service or product envisaged is appropriate for him.(2) This warning may be provided in a standardised format. [Note: article 19(5) of MiFID]
COBS 10.3.3GRP
If a client asks a firm to go ahead with a transaction, despite being given a warning by the firm, it is for the firm to consider whether to do so having regard to the circumstances.
1If a client requests a firm (F) to transfer the title to a retail investment product which is held by F directly, or indirectly through a third party, on that client's behalf to another person (P), and F may lawfully transfer the title to that retail investment product to P, F must execute the client's request within a reasonable time and in an efficient manner.
A firm acting as a registrar should carry out a request by F for the re-registration of ownership of a retail investment product to P within a reasonable time.
(1) A person to whom a firm provides, intends to provide or has provided:(a) a service in the course of carrying on a regulated activity; or(b) in the case of MiFID or equivalent third country business, an ancillary service,is a "client" of that firm;(2) A "client" includes a potential client.(3) In relation to the financial promotion rules, a person to whom a financial promotion is or is likely to be communicated is a "client" of a firm that communicates or approves it.(4) A
1(1) A corporate finance contact or a venture capital contact is not a client under the first limb of the general definition. This is because a firm does not provide a service to such a contact. However, it will be a client under the third limb of the general definition for the purposes of the financial promotion rules if the firmcommunicates or approves a financial promotion that is or is likely to be communicated to such a contact. 1(2) Communicating or approving a financial
(1) If a firm provides services to a person that is acting as an agent, the identity of its client will be determined in accordance with the rule on agents as clients (see COBS 2.4.3 R).(2) In relation to a firm establishing, operating or winding up a personal pension scheme or a stakeholder pension scheme, a member or beneficiary of that scheme is a client of the firm.(3) If a firm that does not fall within (2) provides services to a person that is acting as the trustee of a
An investment firm shall, in relation to every order received from a client, and in relation to every decision to deal taken in providing the service of portfolio management, immediately make a record of the following details, to the extent they are applicable to the order or decision to deal in question:(1) the name or other designation of the client;(2) the name or other designation of any relevant person acting on behalf of the client;(3) the details specified in point 4, 6,
Immediately after executing a client order, or, in the case of investment firms that transmit orders to another person for execution, immediately after receiving confirmation that an order has been executed, investment firms shall record the following details of the transaction in question:(1) the name or other designation of the client;(2) the details specified in points 2, 3, 4, 6, and in points 16 to 21, of Table 1 of Annex I;(3) the total price, being the product of the unit
If an investment firm transmits an order to another person for execution, the investment firm shall immediately record the following details after making the transmission:(1) the name or other designation of the client whose order has been transmitted;(2) the name or other designation of the person to whom the order was transmitted;(3) the terms of the order transmitted;(4) the date and exact time of transmission. [Note: article 8(2) of MiFID Regulation]
Points 2, 3, 4, 6, 16 - 21 of Table 1 of Annex 1 of the MiFID Regulation2.Trading dayThe trading day on which the transaction was executed.3.Trading timeThe time at which the transaction was executed, reported in the local time of the competent authority to which the transaction will be reported, and the basis in which the transaction is reported expressed as Co-ordinated Universal Time (UTC) +/- hours.4.Buy/sell indicatorIdentifies whether the transaction was a buy or sell from
COBS 4.13.1RRP
(1) 1This section applies to a firm in relation to a communication to a client, including an excluded communication, that is a marketing communication within the meaning of the UCITS Directive.(2) This section does not apply to:(a) image advertising; or(b) the instrument constituting the fund2, the prospectus, the key investor information (or alternatively the simplified prospectus or EEA simplified prospectus) or the periodic reports and accounts of either a UCITS scheme or an
COBS 4.13.2RRP
(1) A firm must ensure that a marketing communication that comprises an invitation to purchase units in a UCITS scheme or EEA UCITS scheme and that contains specific information about the scheme:(a) makes no statement that contradicts or diminishes the significance of the information contained in the prospectus and the key investor information document or EEA key investor information document for the scheme;(b) indicates that a prospectus exists for the scheme and that the key
COBS 4.13.3RRP
A firm must ensure that a marketing communication (other than a key investor information document or EEA key investor information document) relating to a feeder UCITS contains a statement that the feeder UCITS permanently invests at least 85% in value of its assets in units of its master UCITS.[Note: article 63(4) of the UCITS Directive]
COBS 12.4.8GRP
The disclosures required under COBS 12.4.7 R (1)(e) and COBS 12.4.7R (1)(f) may, if the firm so chooses, be made by graphical means (for example by use of a line graph).
COBS 12.4.11GRP
Nothing in COBS 12.4.10 R (1)(a) prevents a firm from choosing to disclose significant shareholdings above a lower threshold (for example, 1%) than is required by COBS 12.4.10 R (1)(a).
COBS 12.4.14GRP
The FCA considers that it is important for the proportions published in compliance with COBS 12.4.10 R (4) to be consistent and meaningful to the recipients of the research recommendations. Accordingly for non-equity material, the relevant categories should be meaningful to the recipients in terms of the course of action being recommended.
COBS 10.4.1RRP
(1) A firm is not required to ask its client to provide information or assess appropriateness if:(a) the service only consists of execution and/or the reception and transmission of client orders, with or without ancillary services, it relates to particular financial instruments and is provided at the initiative of the client;(b) the client has been clearly informed (whether the warning is given in a standardised format or not) that in the provision of this service the firm is
COBS 10.4.2RRP
If a client engages in a course of dealings involving a specific type of product or service through the services of a firm, the firm is not required to make a new assessment on the occasion of each separate transaction. A firm complies with the rules in this chapter provided that it makes the necessary appropriateness assessment before beginning that service. [Note: recital 59 to the MiFID implementing Directive]
COBS 10.4.3RRP
A client who has engaged in a course of dealings involving a specific type of product or service beginning before 1 November 2007 is presumed to have the necessary experience and knowledge in order to understand the risks involved in relation to that specific type of product or service. [Note: recital 59 of the MiFID implementing Directive]
This section does not apply if the retail client is outside the United Kingdom.
1A firm which:2(1) arranges for retail clients to buy retail investment products or makes personal recommendations to retail clients in relation to retail investment products; and22(2) uses a platform service for that purpose;must take reasonable steps to ensure that it uses a platform service which presents its retail investment products without bias.
COBS 18.9.1RRP
12(1) The financial promotion rules in COBS apply to an ICVC, except that COBS 4.13 (UCITS) applies only to an ICVC that is a UCITS scheme.2(2) COBS 14.2 (Providing product information to clients) applies to an ICVC that is a UCITS scheme.2
COBS 18.9.2GRP
Firms should note that the operator of an ICVC when it is undertaking scheme management activity will be subject to COBS 18.5.2R.