COBS 11.7A Personal account dealing relating to MiFID, equivalent third country or optional exemption business

(1) A firm must establish, implement and maintain adequate arrangements aimed at preventing the activities set out in paragraphs (2) to (4) in respect of any of its relevant persons who are involved in activities that may give rise to a conflict of interest, or who have access to inside information or to other confidential information relating to clients or transactions with, or for, clients by virtue of an activity carried out by them on behalf of the firm.

(2) A firm must ensure that relevant persons do not enter into a personal transaction which meets at least one of the following criteria:

1. (a) that person is prohibited from entering into it under the Market Abuse Regulation;
2. (b) it involves the misuse or improper disclosure of confidential information;
3. (c) it conflicts or is likely to conflict with an obligation of the firm under UK law on markets in financial instruments.

(3) A firm must ensure that relevant persons do not advise or recommend, other than in the proper course of employment or contract for services, any other person to enter into a transaction in financial instruments which, if it were a personal transaction of the relevant person, would be covered by COBS 11.3.5AR, COBS 11.7A.5R(2) or COBS 12.2.21R(1)(a) or (b);

(4) Subject to Article 10 (1) of the Market Abuse Regulation, a firm must ensure that relevant persons do not disclose, other than in the normal course of their employment or contract for services, any information or opinion to any other person where the relevant person knows, or reasonably ought to know, that as a result of that disclosure that other person will or would be likely to take either of the following steps:

1. (a) to enter into a transaction in financial instruments which, if it were a personal transaction of the relevant person, would be covered by COBS 11.3.5AR, COBS 11.7A.5R(2) or COBS 12.2.21R(1)(a) or  (b);
2. (b) to advise or procure another person to enter into such a transaction.

(5) Firms must design the arrangements required under (1) in such a way to ensure that:

1. (a) each relevant person covered by this rule is aware of the restrictions on personal transactions, and of the measures established by the firm in connection with personal transactions and disclosure under this rule;
2. (b) the firm is informed promptly of any personal transaction entered into by a relevant person, either by notification of that transaction or by other procedures enabling the firm to identify such transactions;
3. (c) a record is kept of the personal transaction notified to the firm or identified by it, including any authorisation or prohibition in connection with such a transaction.

(5A) In the case of outsourcing arrangements, the firm must ensure that the third party to which the activity is outsourced maintains a record of personal transactions entered into by any relevant person and provides that information to the firm promptly on request.

(6) [deleted]