Template:COBS Section 11.6.3: Difference between revisions

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::(b) passes on the [[broker]]’s or other person's charges to its customers; and <br>
::(b) passes on the [[broker]]’s or other person's charges to its customers; and <br>
::(c) is offered goods or services in return for the charges referred to in (b). <br>
::(c) is offered goods or services in return for the charges referred to in (b). <br>
:(2) This prohibition does not apply if the {{cobsprov|investment manager}} has reasonable grounds to be satisfied that the goods or services received in return for the charges: <br>
:(2) [deleted] <br>
::(a) <br>
:(3) The prohibition under (1) does not apply where:
:::(i) are related to the execution of trades on behalf of the {{cobsprov|investment manager}}’s customers; or <br>
::(a) the {{cobsprov|investment manager}} has reasonable grounds to be satisfied that the good or service received in return for the charges in (1)(b) will reasonably assist the {{cobsprov|investment manager}} in the provision of its services to its customers, on whose behalf the relevant customer orders are being executed; <br>
:::(ii) comprise the provision of research; and <br>
::(b) the {{cobsprov|investment manager}}’s receipt of that good or service in return for the charges in (1)(b) does not, and is not likely to, impair compliance with the duty of the investment manager to act in the best interests of its customers; and
::(b) will reasonably assist the {{cobsprov|investment manager}} in the provision of its services to its customers on whose behalf the orders are being executed and do not, and are not likely to, impair compliance with the duty of the {{cobsprov|investment manager}} to act in the best interests of its customers. <br>
::(c) that good or service either:
:::(i) is directly related to the execution of trades on behalf of the {{cobsprov|investment manager}}'s customers; or
:::(ii) amounts to the provision of substantive research. <br>

Latest revision as of 10:23, 10 October 2017

11.6.3 Use of dealing commission to purchase goods or services

(1) An investment manager must not accept goods or services in addition to the execution of its customer orders if it:
(a) executes its customer orders through a broker or another person;
(b) passes on the broker’s or other person's charges to its customers; and
(c) is offered goods or services in return for the charges referred to in (b).
(2) [deleted]
(3) The prohibition under (1) does not apply where:
(a) the investment manager has reasonable grounds to be satisfied that the good or service received in return for the charges in (1)(b) will reasonably assist the investment manager in the provision of its services to its customers, on whose behalf the relevant customer orders are being executed;
(b) the investment manager’s receipt of that good or service in return for the charges in (1)(b) does not, and is not likely to, impair compliance with the duty of the investment manager to act in the best interests of its customers; and
(c) that good or service either:
(i) is directly related to the execution of trades on behalf of the investment manager's customers; or
(ii) amounts to the provision of substantive research.