Client’s best interest rule

Section 2.1, COBS Rules

COBS Rules
COBS 2.1.1: The client's best interests rule (1) A firm must act honestly, fairly and professionally in accordance with the best interests of its client (the client's best interests rule).
(2) This rule applies in relation to designated investment business carried on:

(a) for a retail client; and

(b) in relation to MiFID or equivalent third country business, for any other client.

(3) For a management company, this rule applies in relation to any UCITS scheme or EEA UCITS scheme the firm manages.

Note: article 19(1) of MiFID and article 14(1)(a) and (b) of the UCITS Directive.
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Conduct of Business

This is an article about the FCA’s conduct of business rules, known by its chapter in the FCA Sourcebook, COBS, which implement, among other things, MiFID (directive 2004/39/EC (EUR Lex) and implementing directive 2006/73/EC (EUR Lex)).