Use of dealing commission to purchase goods or services - COBS Provision: Difference between revisions

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Use of dealing commission to purchase goods or services - COBS Provision (view source)

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-{{quote|{{cobsprov|11.6.3}} {{cobsprov|Use of dealing commission to purchase goods or services}}
+{{fullanat|cobs|11.6.3|}}
-:(1) An investment manager must not accept goods or services in addition to the execution of its customer orders if it: <br>
+This rule has been the subject [https://www.fca.org.uk/publications/policy-statements/ps14-7-changes-use-dealing-commission-rules-feedback-cp13-17-and FCA Policy Statement 14/7]  which changed the ground rules re whether [[corporate access]] could be treated as [[research]] for the purposes of COBS {{cobsprov|11.6.3}}. Expect {{tag|MiFID 2}} to wring yet more changes.
-::(a) executes its customer orders through a broker or another person; <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>
-:(2) This prohibition does not apply if the investment manager has reasonable grounds to be satisfied that the goods or services received in return for the charges: <br>
-::(a) <br>
-:::(i) are related to the execution of trades on behalf of the investment manager's customers; or <br>
-:::(ii) comprise the provision of research; and <br>
-::(b) will reasonably assist the 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 investment manager to act in the best interests of its customers. <br>}}
-===Commentary===
+See also {{cobsprov|11.6.8}} which gives examples of goods or services that relate to the execution of trades or the provision of research that the {{tag|FCA}} does ''not'' regard as meeting the requirements of either evidential provisions.
-See also {{cobsprov|2.3.1}} for the general rule on {{cobsprov|Inducements}}. This rule has been the subject of a [http://www.fsa.gov.uk/static/pubs/other/conflicts-of-interest.pdf circular on conflicts of interest] circulated in 2012 by the FSA which created some consternation as to whther [[corporate access]] could be treated as [[research]] for the purposes of COBS {{cobsprov|11.6.3}}.
-See also {{cobsprov|11.6.8}} which gives examples of goods or services that relate to the execution of trades or the provision of research that the FSA does ''not'' regard as meeting the requirements of either evidential provisions.
+{{Seealso}}
+*[https://www.fca.org.uk/publications/policy-statements/ps14-7-changes-use-dealing-commission-rules-feedback-cp13-17-and FCA Policy Statement 14/7 on Changes to the use of dealing commission rules]
+*{{cobsprov|2.3.1}} for the general rule on {{cobsprov|Inducements}}.
+*{{cobsprov|11.6}} generally on the {{cobsprov|use of dealing commissions}} to pay for investment research and other stuff.
-{{cobsanatomy}}