Application of BCOBS to firms selling structured deposits
| 1.1 | R | The BCOBS provisions shown below do not apply to a MiFID investment firm, a third country investment firm or a MiFID optional exemption firm in relation to the sale of structured deposits subject to the rules specified in COBS 1.1.1AR(1). | |
| BCOBS provision | Description | ||
| BCOBS 2 | Communications with banking customers and financial promotions | ||
| BCOBS 4 (other than BCOBS 4.1.4AG and BCOBS 4.3) | Information to be communicated to banking customers | ||
| 1.2 | G | A firm to which BCOBS 1 Annex 1 paragraph 1.1R applies should read and understand the reference to the appropriate information rule in BCOBS 4.1.4AG as referring to COBS 2.2A.2R. | |
| 1.3 | G | A MiFID investment firm, a third country investment firm or a MiFID optional exemption firm that sells structured deposits should consider COBS 1.1.1AR to COBS 1.1.1AER. These rules specify how certain provisions in COBS apply to a firm in relation to the sale of structured deposits. | |
| Financial promotions relating to structured deposits | |||
| 1.4 | G | (1) BCOBS 2 contains rules which apply to a firm when it communicates a financial promotion that is not an excluded communication or when the firm approves a financial promotion. (2) If a financial promotion relates to a structured deposit, rules relating to past, simulated past and future performance in COBS 4.5A or COBS 4.6 will also apply. | |
| Structured deposits as consumer composite investments | |||
| 1.5 | G | Firms are reminded that structured deposits are consumer composite investments and that the disclosure requirements in DISC apply to such products. DISC requires a person who distributes (within the meaning of that term in DISC) a consumer composite investment to provide a retail investor (within the meaning of that term in DISC) with a product summary for that consumer composite investment. | |
| 1.6 | G | Where a firm is required to provide information in accordance with the disclosure requirements in DISC, it will not be required to provide the same information under BCOBS 4.1. | |