Agent as client - FCA Provision: Difference between revisions

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In which the FCA inveigles on the much talked-about, seldom asked<ref>And, in the halls of the [[European Securities and Markets Association]] seemingly, ''never'' asked.</ref>, question “who is this {{fcaprov|client}} fellow, anyway?”


{{anat|cobs}}
An interesting point to note, especially post [[Brexit]]<ref>Assuming such an uplands-sunlit time ever comes to pass.</ref> is that this kind forensic precision goes wholly unaddressed among the mountains of directives, regulations, implementing directives, level two texts and ESMA Q&As that comprise [[MiFID]]. ''Nowhere'' does MiFID say ''who'' the client is: this rule is made up out of whole cloth by the Brits.
 
You may further wonder about the [[FCA]]’s definition of {{fcaprov|client}}, and if so, by all means make all haste there — but expect to conclude “{{isia}}”.
{{sa}}
*[[MiFID]]
{{ref}}

Latest revision as of 13:30, 14 August 2024

The JC’s Reg and Leg resource™
UK Edition

COBS Rules
COBS 2.4.3 Agent as client

(1) If a firm (F) is aware that a person (C1) with or for whom it is providing services is acting as agent for another person (C2) in relation to those services, C1, and not C2, is the client of F in respect of that business.
(2) Paragraph (1) does not apply if:

(a) F has agreed with C1 in writing to treat C2 as its client; or
(b) C1 is neither a firm nor an overseas financial services institution and the main purpose of the arrangements between the parties is the avoidance of duties that F would otherwise owe to C2.

If this is the case, C2 is the client of F in respect of that business and C1 is not.
(3) If there is an agreement under (2)(a) in relation to more than one C2 represented by C1, F may discharge any requirement to notify, obtain consent from, or enter into an agreement with each C2 by sending to, or receiving from, C1 a single communication expressed to cover each C2, except that the following will be required for each C2:

(a) separate risk warnings required under this sourcebook;
(b) separate confirmations under the requirements on occasional reporting (COBS 16.3); and
(c) separate periodic statements.

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In which the FCA inveigles on the much talked-about, seldom asked[1], question “who is this client fellow, anyway?”

An interesting point to note, especially post Brexit[2] is that this kind forensic precision goes wholly unaddressed among the mountains of directives, regulations, implementing directives, level two texts and ESMA Q&As that comprise MiFID. Nowhere does MiFID say who the client is: this rule is made up out of whole cloth by the Brits.

You may further wonder about the FCA’s definition of client, and if so, by all means make all haste there — but expect to conclude “I’m sorry I asked”.

See also

References

  1. ↑ And, in the halls of the European Securities and Markets Association seemingly, never asked.
  2. ↑ Assuming such an uplands-sunlit time ever comes to pass.
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