Rule 19 shall not prevent the distribution of insurance products which provide coverage for various types of risks (multi-risk insurance policies). is conducted in such a way to ensure that any delegation of responsibilities is to an appropriate person and is overseen effectively. However, if a person takes steps to influence the decision not to report to the regulator concerned or acts in a way that is intended to obstruct the reporting of the information to the regulator concerned, then the appropriate regulator will, in respect of that information, view them as being one of those within the firm who has taken on responsibility for deciding whether to report that matter to the regulator concerned. Brokers will need to provide details of the main 5 execution venues for each of the main categories of financial instruments they provide services in relation to. All information these cookies collect is aggregated and therefore anonymous. A manager is unlikely to be an expert in all aspects of a complex financial services business. 3Rule 2 in COCON 2.1.3R applies to a director (whether executive or non-executive) when taking part in the activities of the Board, other governing body or of its committees. Smarsh handles information you submit to Smarsh in accordance with its Privacy Policy. As such it is well suited to the Compliance professional who has already attended an Introduction to UK regulation event and is now deepening their knowledge, or to the more experienced professional who hasn’t needed to stay up to date on wider COBS issues. The following is a non-exhaustive list of examples of conduct by any conduct rules staff that would be in breach of rule 2. of material information in circumstances where the member of conduct rules staff was aware, or ought to have been aware, of such information, and of the fact that they should provide it, including the following: failing to explain the risks of an investment to a customer; failing to disclose to a customer details of the charges or surrender penalties of investment products; providing inaccurate or inadequate information to a firm or its auditors; failing to disclose dealings where disclosure is required by the firm's personal account dealing rules. and references to "you" in these rules should be read accordingly. The following is a non-exhaustive list of examples of conduct by a manager that would be in breach of rule 2. Tell us about yourself, and we’ll be in touch right away. The following is a non-exhaustive list of examples of conduct that would be in breach of rule 4. (1) Misleading (or attempting to mislead) by act or omission: (a) a client; or (b) the firm for whom the person works (or its auditors); or (c) the FCA or; (d) the PRA. We focus on practical interpretation of the rules and industry responses. The main impact of the new restrictions on inducements is therefore likely to be on portfolio managers, who are not currently subject to the RDR unless they offer advisory services. These cookies may be set through our site by our advertising partners. Nor are markets limited to markets for professionals (such as the wholesale foreign exchange markets) or ones that involve tradeable and transferable assets. Made under section 31 of the Solicitors Act 1974, section 9 of the Administration of Justice Act 1985, section 83 of the Legal Services Act 2007 and section 332 of the Financial Services and Markets Act 2000. The FCA’s Conduct of Business Sourcebook (COBS) applies to firms conducting the following activities from an establishment, or through an appointed representative, in the United Kingdom: (1) selling activities relating to long-term insurance, (2) designated investment business, or (3) any activities connected to them. © 2020 Smarsh Inc. Smarsh and the Smarsh logo are registered trademarks of Smarsh Inc. in the United States. For Mains: Need for and significance of the Code of conduct for MPs and MLAs. Failing to take reasonable steps to ensure that the business of the firm for which the manager has responsibility: complies with the relevant requirements and standards of the regulatory system applicable to that area of the business; and. This helps us to provide you with a good experience when you browse our site and also allows us to improve our site. in the case of instructions, the date on which they were received. the charges or surrender penalties of products; the likely performance of products by providing inappropriate projections of future returns. Providing false or inaccurate documentation or information, including details of training, qualifications, past employment record or experience. https://www.handbook.fca.org.uk/handbook/COBS/Sch/1/1.html, https://www.handbook.fca.org.uk/handbook/COBS.pdf. Failing to take reasonable steps to adequately inform themselves about the affairs of the business for which they are responsible, including: permitting transactions without a sufficient understanding of the risks involved; permitting expansion of the business without reasonably assessing the potential risks of that expansion; inadequately monitoring highly profitable transactions or business practices, or unusual transactions or business practices; accepting implausible or unsatisfactory explanations from subordinates without testing the veracity of those explanations; and. You must consult an attorney for advice regarding your compliance with laws and regulations applicable to your business. Apart from rule 2 (Status Disclosure), these rules apply to: Notwithstanding the wider information obligations in the, a statement that you are not authorised by the, a statement that you are authorised and regulated by the, a statement explaining that complaints and redress mechanisms are provided through the, Before you provide a service, which includes the carrying on of an, You must ensure that where you have agreed or decided in your discretion to effect a, the terms of the instructions or decision; and. Too often we become focused on the same rules and requirements and don’t keep ourselves appraised of the breadth of the COBS requirements. To be able to outline the key requirements of COBs and the transposition of MiFID provisions, To able to outline the relevant touchpoints of COBS with the end-to-end client journey, beginning with product design, To recognise the linkage between COBS and other key rulebooks, to support holistic compliance advisory and monitoring activity, To recognise good practice / avoid poor practices, To recognise how the regulatory principles and mindset permeate the COBs rules, To understand a firm’s obligations to its clients, The Conduct Authority, Conduct Risk and the Conduct of Business rules, Rationale behind its position in the rulebook hierarchy, Links to the FCA 5 Conduct Risk Question Framework, Examples of good and poor practice as identified by FCA, Information disclosure before providing services, Retail, Professional and Eligible Counterparty, Fair, clear and not misleading promotions, FG15/4: Social media and customer communications, Identification and approval – process and records. Our FCA Conduct of Business Rules live webinar covers the most commonly experienced and misunderstood requirements from the COBS rulebook. If you are a COLP or a nominated authorised signatory for a firm we regulate, you need to let us know whether or not your firm carries out financial activities for clients as part of your legal work. A general consideration about whether or not a person's conduct complies with the relevant requirements and standards of the market, is whether they, or the firm, comply2 with relevant market codes and exchange rules. The trainer has over 20 years’ experience in compliance and risk management leading European and Global functions in Wealth Management divisions, custodians and global banks. To view the FCA’s table of recordkeeping requirements found in COBS: https://www.handbook.fca.org.uk/handbook/COBS/Sch/1/1.html, Link to Handbook: https://www.handbook.fca.org.uk/handbook/COBS.pdf. When you offer a non-insurance ancillary product or service as part of a package or in the same agreement with an insurance product, you must: where applicable, any way in which the risk or insurance coverage resulting from the agreement or package differs from that associated with taking the components separately; and, When you offer an insurance product ancillary to and as part of a package or in the same agreement with a non-insurance product or service, you must offer the. Our live virtual learning webinars give participants live access to the trainers, and there will be an opportunity for live Q&A. We are always judged by our results which speak for themselves and the feedback received from previous delegates has always been excellent. https://www.handbook.fca.org.uk/handbook/ICOBS/Sch/1/1.html, https://www.handbook.fca.org.uk/handbook/ICOBS/. He will pass on past experiences to enhance the workshop and help bring it to life. These cookies enable the website to provide enhanced functionality and personalisation. We do not use academics. You must consult an attorney for advice regarding your compliance with laws and regulations applicable to your business. To understand the part the Conduct Rules play, think of the Regime as a pyramid, with the Senior Managers Regime at the top, the Certification Regime in the middle, and the Conduct Rules forming the base. Providing a customer with a product which is different to the one applied for by that customer, unless the customer understands the differences and understands the product they have purchased. Your course director is experienced as both a regulator and in training regulatory requirements across wholesale and retail financial firms.