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Rule on Inducements - COBS Provision: Difference between revisions
Rule on Inducements - COBS Provision (view source)
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Want to take your client to Wimbledon? Forget about it. | Want to take your client to Wimbledon? Forget about it. | ||
{{inducements under cobs and perg}} | |||
===Research and benefits [[broker]]s provide to [[investment manager]] clients=== | |||
Leaving aside the terribly [[tedious]] topic of research unbundling for a moment (I know — can you bear to?) a broker giving discounts and free research to an investment manager for whom it is accepting orders does not breaching the rule on inducements because the investment manager is its client. The investment manager’s clients are not, so there is no third party action here, at least not from the [[broker/dealer]]’s perspective. | |||
But the [[investment manager]] in turn has its own inducement rules (see {{cobsprov|2.3A.15}}), which make it clear that the [[investment manager]] must pass all the inducements on to its clients unless they are “acceptable minor non-monetary benefits” or third party research which is provided in accordance with the terribly tedious unbundling rules in COBS 2.3B. | |||
===Retrocessions for fund aggregators=== | ===Retrocessions for fund aggregators=== | ||
If you are a {{tag|MiFID}} entity there are these categories: | If you are a {{tag|MiFID}} entity there are these categories: | ||
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{{sa}} | {{sa}} | ||
*FCA’s [[Perimeter Guidance Rules]] | |||
*COBS {{cobsprov|11.6.3}} et seq. regarding ({{cobsprov|Use of dealing commission}}), and also [[corporate access]]. | *COBS {{cobsprov|11.6.3}} et seq. regarding ({{cobsprov|Use of dealing commission}}), and also [[corporate access]]. | ||
*{{cobsprov|2.3.1}} - the {{cobsprov|Rule on Inducements}} | *{{cobsprov|2.3.1}} - the {{cobsprov|Rule on Inducements}} | ||
*[http://www.kwm.com/en/uk/knowledge/insights/the-mifid-ii-inducements-regime-20161026 Good article on rebates and retrocessions] | *[http://www.kwm.com/en/uk/knowledge/insights/the-mifid-ii-inducements-regime-20161026 Good article on rebates and retrocessions] | ||