COBS Anatomy: Difference between revisions
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COBS {{cobsprov|6}} {{cobsprov|Information about the firm, its services and remuneration}}<br> | COBS {{cobsprov|6}} {{cobsprov|Information about the firm, its services and remuneration}}<br> | ||
COBS {{cobsprov|7}} {{cobsprov|Insurance mediation}}<br> | COBS {{cobsprov|7}} {{cobsprov|Insurance mediation}}<br> | ||
{{COBS Section 8 TOC}} <br> | |||
COBS {{cobsprov|9}} {{cobsprov|Suitability (including basic advice)}}<br> | COBS {{cobsprov|9}} {{cobsprov|Suitability (including basic advice)}}<br> | ||
COBS {{cobsprov|10}} {{cobsprov|Appropriateness (for non-advised services)}}<br> | COBS {{cobsprov|10}} {{cobsprov|Appropriateness (for non-advised services)}}<br> |
Latest revision as of 17:07, 22 November 2016
MiFID Categorisation
- Professional clients: per se professional client | elective professional client
- ECPs: per se eligible counterparty | elective eligible counterparty | COBS 1 Annex 1 for disapplication of COBS rules to ECPs
- Retail client: See COBS 3.4: one who is not a professional client or an ECP
- Categorisation decision tree (pdf)
COBS 1 Application
COBS 2 Conduct of business obligations
- COBS 2.1 Acting honestly, fairly and professionally
- COBS 2.2 Information disclosure before providing services
- COBS 2.3 Inducements
- COBS 2.4 Agent as client and reliance on others
- 3.1 Application
- 3.2 Clients
- 3.3 General notifications
- 3.4 Retail clients
- 3.5 Professional clients
- 3.6 Eligible counterparties
- 3.7 Providing clients with a higher level of protection
- 3.8 Policies, procedures and records
COBS 4 Communicating with clients, including financial promotions
COBS 5 Distance communications
COBS 6 Information about the firm, its services and remuneration
COBS 7 Insurance mediation
COBS 8 Client agreements: designated investment business
- 8.1.1
- 8.1.2 [Written basic agreement for retail clients]
- 8.1.3 [Information to be provided to a retail client]
- 8.1.4
- 8.1.5
- 8.1.6
COBS 9 Suitability (including basic advice)
COBS 10 Appropriateness (for non-advised services)
COBS 11 Dealing and managing including best execution
- Template:TOC COBS 11.1
- COBS 11.2 Best Execution
- Note that, courtesy of 1 Annex 1 best execution obligations are not owed to an eligible counterparty, but only to a professional client or a retail client.
- COBS 11.2.1 Obligation to execute orders on terms most favourable to the client
- COBS 11.2.2 Application of best execution obligation
- COBS 11.2.3
- COBS 11.2.4
- COBS 11.2.5
- COBS 11.2.6 Best execution criteria
- COBS 11.2.7 Role of price
- COBS 11.2.19 Following specific instructions from a client
- [...]
- COBS 11.2.25: Consent to best execution policy generally
- COBS 11.2.26: Client consent to execution policy and execution of orders outside a regulated market or MTF
- COBS 11.2.1 Obligation to execute orders on terms most favourable to the client
Best execution criteria
COBS 11.2.6R28/02/2014
When executing a client order, a firm must take into account the following criteria for determining the relative importance of the execution factors: (1) the characteristics of the client including the categorisation of the client as retail or professional;
(2) the characteristics of the client order;
(3) the characteristics of financial instruments that are the subject of that order;
(4) the characteristics of the execution venues to which that order can be directed; and
(5) for a management company, the objectives, investment policy and risks specific to the UCITS scheme or EEA UCITS scheme, as indicated in its prospectus or instrument constituting the fund.
[Note: article 44(1) of the MiFID implementing Directive and article 25(2) second sentence of the UCITS implementing Directive]
- Template:TOC COBS 11.3 Use of dealing commission to purchase goods or services
- 11.4.1 Obligation to make unexecuted client limit orders public
- 11.4.2
- 11.4.3 How client limit orders may be made public
- 11.4.4
- 11.4.5 Orders that are large in scale
- 11.4.6
Unless a client expressly instructs otherwise, a firm must, in the case of a client limit order in respect of shares admitted to trading on a regulated market which is not immediately executed under prevailing market conditions, take measures to facilitate the earliest possible execution of that order by making public immediately that client limit order in a manner which is easily accessible to other market participants.
- Template:TOC COBS 11.5
- These COBS rules may have changed as a result of MiFID II
- COBS 11.6 Use of dealing commissions
COBS 12 Investment research
COBS 13 Preparing product information
COBS 14 Providing product information to clients
COBS 15 Cancellation
COBS 16 Reporting information to clients
COBS 17 Claims handling for long-term care insurance
COBS 18 Specialist Regimes
COBS 19 Pensions supplementary provisions
COBS 20 With-profits
COBS 21 Permitted Links
COBS transchedule Transitional Provisions and Schedules
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)).