Agent as client - FCA Provision: Difference between revisions

From The Jolly Contrarian
Jump to navigation Jump to search
No edit summary
Line 1: Line 1:
{{fullanat|cobs|2.4.3| }}
{{fullanat|cobs|2.4.3| }}
In which the FCA inveigles on the much talked about, seldom asked, question “who is this {{fcaprov|client}} fellow, anyway?”
In which the FCA inveigles on the much talked about, seldom asked, question “who is this {{fcaprov|client}} fellow, anyway?” Interesting point to note, especially post [[Brexit]]<ref>assuming such a time ever comes to pass.</ref> is that this forensic precision on the question of who is my client is one unaddressed by the legions of directives, regulations, implementing directives and level two texts that comprise {{t|MiFID}}. This rule is made up out of whole cloth by the Brits.


You may further wonder about the {{tag|FCA}}'s definition of {{fcaprov|client}}, and if so, by all means make all haste there - but you may conclude “{{isia}}”.
You may further wonder about the {{tag|FCA}}'s definition of {{fcaprov|client}}, and if so, by all means make all haste there - but you may conclude “{{isia}}”.

Revision as of 09:41, 5 December 2018

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.

View Template

Index: Click to expand:
Tell me more
Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

In which the FCA inveigles on the much talked about, seldom asked, question “who is this client fellow, anyway?” Interesting point to note, especially post Brexit[1] is that this forensic precision on the question of who is my client is one unaddressed by the legions of directives, regulations, implementing directives and level two texts that comprise MiFID. 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 you may conclude “I’m sorry I asked”.

  1. assuming such a time ever comes to pass.