Rule on Inducements - COBS Provision: Difference between revisions

Rule on Inducements - COBS Provision (view source)

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 In a nutshell:
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-{{fcaprov|2.3.1}} A {{fcaprov|firm}} must not pay/accept any fee or give/receive any other benefit in relation to business carried on for a {{fcaprov|client}} other than:
+{{fcaprov|2.3.1}} A {{fcaprov|firm}} must not give or receive any fee, commission or non-monetary benefit ('''benefit''') in relation to business carried on for a {{fcaprov|client}} other than:
-:(1) '''Client Fees''': a fee paid to or by the client; or
+:(1) '''Client Benefits''': a benefit paid to or by the client; or
-:(2) '''Third Party Fees''': a fee paid or provided to or by a third party if:
+:(2) '''Third Party Benefits''': a benefit paid or provided to or by a third party if:
 ::(a) '''No impairment''': it does not impair the firm's duty to act in the client’s best interests; and
 ::(b) '''Full disclosure''': it is clearly and comprehensively disclosed to the client before providing the service; and
-::(c) '''Service enhancement''': the fee is designed to enhance the quality of the service to the client; or
+::(c) '''Service enhancement''': the benefit is designed to enhance the quality of the service to the client; or
-:(3) '''Ancillary fees''': fees which enable designated investment business or ancillary services, such as custody costs, exchange fees, regulatory levies or legal fees, and which cannot give rise to conflicts with a clients’ best interests.
+:(3) '''Ancillary Benefits''': benefits which enable designated investment business or ancillary services, such as custody costs, exchange fees, regulatory levies or legal fees, and which cannot give rise to conflicts with a clients’ best interests.
 }}