Investment Research + COBS 16

Question 1

Investment Research

Answer 1

When firm publish research make sure

• No inducements
• no promise issuers favourable coverage
• issuers covered not permitted to review drafts of research

Dealing Ahead
Firm must not deal for own account until clients who publication is for have had time to react

unless;
market maker
Unsolicited client order (execution only)

Rule use to be COBS 12 - now Part of UK MAR

Question 2

COBS 16 Name

Answer 2

Reporting to Clients

Communications - Fair , Clear and not misleading

Question 3

Transaction Confirmations

Answer 3

Also known as Occasional Reports

Ensures clients advised on details of transaction

Promptly to confirm transaction - no later than the next business day

Any exceptions
MIFID business = none
NON - MIFID business (opt out )

If requested by client
life policy or personal pension scheme

Question 4

Statements

Answer 4

Also known as Periodic Reports

Clients Portfolio - Total fees and charges

Value and Composition - Total dividends and interest

General rule - prepared every 3 months

Geared Portfolio - (derivatives ) prepared every month

Question 5

Rules that include Eligible Counter-parties

Answer 5

Client Categorisation

Most info disclosure rules

Investment research

Personal account dealing

Occasional and periodic reporting rules

Question 6

Rules that apply to retail clients only

Answer 6

Financial Promotion Rules

Retail Distribution Review Regulations + FAMR

Retail Investment product disclosures

Question 7

Other rule COBS

Answer 7

All other rules apply to retail and professional clients

NOT ECP