Use of dealing commissions - COBS Provision

Compare with the general rule on inducements which, some might say, are the general proposition from which these detailed provisions may be derived, but others would say are not quite so prescriptive. The rules as to the use of dealing commissions relate only to firms who act as investment managers: potentially a key difference from the general rule on inducements, because it would not catch a broker or dealer accepting orders from anyone who was not an FCA regulated investment manager (i.e., a foreigner or a direct client).

To be clear, in this case the general rule on inducements would continue to apply to the broker: just not the more detailed use of dealing commissions rules.

These COBS rules may have changed as a result of MiFID II

[[COBS}} 11.6 {{Cobsprov|Use of dealing commissions]]

[[COBS}} {{Cobsprov|11.6.1]]

[[COBS}} {{Cobsprov|11.6.2]]

[[COBS}} 11.6.3 {{cobsprov|Use of dealing commission to purchase goods or services]]

[[COBS}} {{Cobsprov|11.6.4]]

[[COBS}} {{Cobsprov|11.6.5]]

[[COBS}} {{Cobsprov|11.6.6]]

[[COBS}} {{Cobsprov|11.6.7]]

[[COBS}} {{Cobsprov|11.6.8]]G - examples of goods and services that are not exempt and cannot be paid for from dealing commissions

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)).