Template:Nutshell COBS 2.3.1: Difference between revisions

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{{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:
{{fcaprov|2.3.1}} A {{fcaprov|firm}} cannot give or take any benefit relating to {{fcaprov|client}} business except:
:(1) '''Client Benefits''': a benefit paid to or by the client; or
:(1) '''Client Benefits''': one the client pays for/receives directly; or
:(2) '''Third Party Benefits''': a benefit paid or provided to or by a third party if:
:(2) '''Third Party Benefits''': a third party pays/receives if:
::(a) '''No impairment''': it does not impair the firm's duty to act in the client’s best interests; and
::(a) '''No impairment''': it does not impair the firm’s duty to act in the {{fcaprov|client}}’s best interests; and
::(b) '''Full disclosure''': it is clearly and comprehensively disclosed to the client before providing the service; and
::(b) '''Full disclosure''': the firm fully discloses it before providing it; and
::(c) '''Service enhancement''': the benefit is designed to enhance the quality of the service to the client; or  
::(c) '''Service enhancement''': it enhances the quality of the firm’s service to the client; or  
:(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.
:(3) '''Ancillary Benefits''': one that facilitates {{fcaprov|designated investment business}} or {{fcaprov|ancillary services}} and doesn’t conflict with the {{fcaprov|client}}’s interests (eg custody, clearing or exchange fees, legal fees, etc.)

Latest revision as of 13:30, 23 December 2020

2.3.1 A firm cannot give or take any benefit relating to client business except:

(1) Client Benefits: one the client pays for/receives directly; or
(2) Third Party Benefits: a third party pays/receives if:
(a) No impairment: it does not impair the firm’s duty to act in the client’s best interests; and
(b) Full disclosure: the firm fully discloses it before providing it; and
(c) Service enhancement: it enhances the quality of the firm’s service to the client; or
(3) Ancillary Benefits: one that facilitates designated investment business or ancillary services and doesn’t conflict with the client’s interests (eg custody, clearing or exchange fees, legal fees, etc.)
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