Template:Nutshell COBS 2.3.1: Difference between revisions
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{{fcaprov|2.3.1}} A {{fcaprov|firm}} cannot give or take any benefit relating to {{fcaprov|client}} business except: | {{fcaprov|2.3.1}} A {{fcaprov|firm}} cannot give or take any benefit relating to {{fcaprov|client}} business except: | ||
:(1) '''Client Benefits''': one the client pays for | :(1) '''Client Benefits''': one the client pays for/receives directly; or | ||
:(2) '''Third Party Benefits''': a third party pays | :(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 {{fcaprov|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''': the firm fully discloses it before providing it; 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 | ::(c) '''Service enhancement''': it enhances the quality of the firm’s service to the client; or | ||
:(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.) | :(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.)