• COBS 3.2 COBS 3.2 Communication of Information and Marketing Material

    • General

      • COBS 3.2.1 COBS 3.2.1

        When communicating information to a Person in relation to a Specified Investment or Regulated Activity, an Authorised Person must take reasonable steps to ensure that the communication is clear, fair and not misleading.

        • Guidance

          A communication addressed to a Professional Client may not need to include the same information, or be presented in the same way, as a communication addressed to a Retail Client.

      • COBS 3.2.2

        An Authorised Person must not, in any form of communication with a Person, attempt to limit or avoid any duty or liability it may have to that Person or any other Person under the ADGM Founding Law or FSMR.

      • COBS 3.2.3

        Where a Rule requires information to be sent to a Client, the Authorised Person must provide that information directly to the Client and not to another Person, unless it is on the written instructions of the Client.

    • Marketing Material

      • COBS 3.2.4

        (a) An Authorised Person must ensure that any Marketing Material communicated to a Person contains the following information:
        (i) the name of the Authorised Person communicating the Marketing Material or, on whose behalf the Marketing Material is being communicated;
        (ii) the Authorised Person's regulatory status; and
        (iii) if the Marketing Material is intended only for Professional Clients or Market Counterparties, a clear statement to that effect and that no other Person should act upon it.
        (b) Marketing Material includes any invitation or inducement to Engage in Investment Activity.
        (c) An Authorised Person which communicates Marketing Material must:
        (i) ensure that the Marketing Material complies with the applicable Rules and any legislation administered by the Regulator; and
        (ii) not distribute such Marketing Material if it becomes aware that the Person offering to carry on the Regulated Activity or offering the Specified Investment to which the Material relates is in breach of the regulatory requirements that apply to that Person in relation to that Specified Investment or Regulated Activity.
        Amended on (3 February, 2020).

      • COBS 3.2.5

        An Authorised Person must take reasonable steps to ensure that:

        (a) any Marketing Material intended for Professional Clients or Market Counterparties is not sent or directed to any Persons who are not Professional Clients or Market Counterparties; and
        (b) no Person communicates or otherwise uses the Marketing Material on behalf of the Authorised Person in a manner that amounts to a breach of the requirements in this section.

    • Past Performance and Forecasts

      • COBS 3.2.6

        An Authorised Person must ensure that any information or representation relating to past performance, or any future forecast based on past performance or other assumptions, which is provided to or targeted at Retail Clients:

        (a) presents a fair, balanced and up-to-date view of the Specified Investments or Regulated Activities to which the information or representation relates;
        (b) identifies, in an easy to understand manner, the source of information from which the past performance is derived and any key facts and assumptions used in that context are drawn;
        (c) contains comparable data for each year and at least 5 years' data where available; and
        (d) contains a prominent warning that past performance is not necessarily a reliable indicator of future results.