1.2) Firms Subject to COBS Flashcards
1
Q
What is The General Application Rule?
A
Based on geographical location and states that firms are subject to COBS.
- if they carry on any of a range of activities from an establishment maintained by them or their appointed representatives in the UK
2
Q
When do COBS generally apply?
A
To a firm which carries on business with a client in the UK from an establishment overseas.
- (unless the overseas person meets certain criteria which allows for some activities to be excluded from the scope of COBS)
3
Q
What is EEA (territorial scope rule)?
A
This special rule overrides the general position when this is necessary to be compatible with EU law
4
Q
When is EEA relevant?
A
To a firm which is conducting business subject to MiFID.
- circumstances where there is a cross-border element or the firm has established a branch in another EEA state.
- both of which can be completed using pass-porting rights
5
Q
UK Firms subject to COBS summary:
A
- COBS applies to UK firms conducting MiFID business for UK clients within the UK (as for other investment firms).
- COBS applies to UK firms that may have established a branch in another EEA state, but who are conducting MiFID investment business outside of that states territory (whether this be the UK or another state)
6
Q
EEA Firms subject to COBS summary:
A
- for an EEA firm that has established a branch in the UK, COBS applies where the business is carried on within the territory of the UK
7
Q
Exception to the rule: UK Firms
A
- investment research and personal account dealing, where the COBS rules apply on a home state basis only.
(This means that this aspect of COBS applies to UK firms, regardless of where they are conducting business)
8
Q
Exception to the rule: EEA Firms
A
- an EEA firm conducting MiFID investment business within the UK is not subject to COBS
(but is subject to the equivalent rules of its home state regulator)
