Inclusions and Exclusions Flashcards
Which firms are subject to COBS - General Application Rule?
- Firms and their ARs in the UK
- Overseas firms in the UK
Which firms are subject to the COBS - EEA Territorial Scope Rule?
- UK firms conducting MiFID business in the UK for UK clients.
- EEA branches of UK firms doing MiFID business outside that state’s territory
- EEA firms with a UK branch
What are the exceptions to the EEA Territorial Scope Rule?
- Investment Research
- Personal Account Dealing
- Appointed Representatives - Firms is principal and responsible.
Rules apply on home state basis only. UK firms are subject to COBS but EEA firms are not.
Which activities are captured by COBS rules?
- Designated investment business
- Life insurance
- Financial Promotions - Accepting Deposits
Under COBS which clients are captured as professional clients?
- Credit institution (bank)
- Investment Firm
- Commodities Dealing
- Local
- Pension Fund
- Institutional Investor
- CIS
- Insurance Company
- Large MiFID undertaking
- Large non-MiFID undertaking
- Governments and public bodies
Under COBS which clients are captured as ECP clients?
All firms that professional clients
CIS under UCITS Directive
Which activities can be classified under an ECP client?
- Executing client orders
- Receiving and transmitting client orders
- Ancillary services
- Arranging
- Dealing on own account
Which firms are required by COBS to produce a client agreement?
- Designated investment business - retail clients
- MiFID business
- Ancillary or third country business - retail and professional
Which firm(s) are exempt from COBS requirements to produce a client agreement?
Life insurance company
Which types of firms need to provide information about the nature and risks of an investment?
- MiFID or equivalent third country business - retail and professional
- Non-MiFID business - retail clients - derivatives, warrants or stock lending activity.
Which firms need to provide information about the firm?
- Retail, professional and ECP clients
To which types of clients must a firm provide information about managing investments?
- Retail clients
To which types of clients must a firm provide information about the safe custody of assets and money?
- Retail, professional and ECP clients
To which types of clients must a firm provide information about the costs?
- Retail, professional and ECP clients
Which types of firms need to provide information about the compensation schemes available?
- MiFID firms
To which type of sales does the Retail Distribution Review brings rules about advisor charging?
- Advised sales - retail products
Which types of sales are exempt from RDR rules on advisor charging?
- Non advised business - execution only and discretionary management of investments