• COBS 12.1 COBS 12.1 Key Information and Content of the Client Agreement

      • COBS 12.1.1 General

        The key information which an Authorised Person is required to provide to a Client and include in the Client Agreement with that Client pursuant to Rule 3.3.2 must include:

        (a) the information set out in:
        (i) Rule 12.1.2(a) if it is a Retail Client; and
        (ii) Rule 12.1.2(b) if it is a Professional Client; and
        (b) where relevant, the additional information required under Rules 12.1.3 and 12.1.4.
        Amended on (3 February, 2020).

      • COBS 12.1.2 Core Information

        (a) In the case of a Retail Client, the information for the purposes of Rule 12.1.1(a) is:
        (i) the name and address of the Authorised Person, and if it is a Subsidiary, the name and address of the ultimate Holding Company;
        (ii) the regulatory status of the Authorised Person;
        (iii) when and how the Client Agreement is to come into force and how the agreement may be amended or terminated;
        (iv) details of fees, costs and other charges and the basis upon which the Authorised Person will impose those fees, costs and other charges;
        (v) sufficient details of the service that the Authorised Person will provide, including where relevant, information about any product or other restrictions applying to the Authorised Person in the provision of its services and how such restrictions impact on the service offered by the Authorised Person; or if there are no such restrictions, a statement to that effect;
        (vi) details of any conflicts of interests for the purposes of disclosure under Rule 3.5;
        (vii) details of any Soft Dollar Agreement required to be disclosed under Rule 3.6; and
        (viii) key particulars of the Authorised Person's Complaints handling procedures and a statement that a copy of the procedures is available free of charge upon request in accordance with GEN 7.2.11.
        (b) In the case of a Professional Client, the information for the purposes of Rule 12.1.1(a) is the information referred to in Rule 12.1.2(a)(i) to Rule 12.1.2(a)(iv).
        Amended on (3 February, 2020).

      • COBS 12.1.3 Additional Information for Investment Business

        The additional information required under Rule 12.1.1(b) for Investment Business is:

        (a) the arrangements for giving instructions to the Authorised Person and acknowledging those instructions;
        (b) information about any agreed investment parameters;
        (c) the arrangements for notifying the Client of any Transaction Executed on his behalf;
        (d) if the Authorised Person may act as principal in a Transaction, when it will do so;
        (e) the frequency of any periodic statements and whether those statements will include some measure of performance, and if so, what the basis of that measurement will be;
        (f) when the obligation to provide best execution can be and is to be waived, a statement that the Authorised Person does not owe a duty of best execution or the circumstances in which it does not owe such a duty; and
        (g) where applicable, the basis on which assets comprised in the portfolio are to be valued.

      • COBS 12.1.4 Additional Information for Investment Management Activities

        The additional information required under Rule 12.1.1(b) where an Authorised Person acts as an Investment Manager is:

        (a) the initial value of the managed portfolio;
        (b) the initial composition of the managed portfolio;
        (c) the period of account for which periodic statements of the portfolio are to be provided in accordance with Rule 6.11; and
        (d) in the case of discretionary investment management activities:
        (i) the extent of the discretion to be exercised by the Authorised Person, including any restrictions on the value of any one Investment or the proportion of the portfolio which any one Investment or any particular kind of Investment may constitute; or that there are no such restrictions;
        (ii) whether the Authorised Person may commit the Client to supplement the funds in the portfolio, and if it may include borrowing on his behalf:
        (A) the circumstances in which the Authorised Person may do so;
        (B) whether there are any limits on the extent to which the Authorised Person may do so and, if so, what those limits are;
        (C) any circumstances in which such limits may be exceeded; and
        (D) any margin lending arrangements and terms of those arrangements;
        (iii) that the Authorised Person may enter into Transactions for the Client, either generally or subject to specified limitation; and
        (iv) where the Authorised Person may commit the Client to any obligation to underwrite or sub-underwrite any issue or offer for sale of Securities:
        (A) whether there are any restrictions on the categories of Securities which may be underwritten and, if so, what these restrictions are; and
        (B) whether there are any financial limits on the extent of the underwriting and, if so, what these limits are.