COBS 2.2A Information disclosure before providing services (MiFID and insurance distribution provisions)

This section applies to a firm:

1. (1)

   in relation to its MiFID, equivalent third country or optional exemption business;

2. (2)

   carrying on insurance distribution activities in relation to:

   1. (a)

      an insurance-based investment product for any client; and/or

   2. (b)

      any other life policy for a retail client but as regards the matters in COBS 2.2A.2R(1)(a) and (d) only.

1. (1)

   A firm must provide appropriate information in good time to a client with regard to:

   1. (a)

      the firm and its services;

   2. (b)

      (for financial instruments) the financial instruments, proposed investment strategies and execution venues;

   3. (c)

      (for insurance-based investment products) the distribution of insurance-based investment products including at least appropriate guidance on, and warnings of, the risks associated with the insurance-based investment product or in respect of particular investment strategies proposed; and

   4. (d)

      all costs and related charges.

[Note: article 24(4) of MiFID and article 29(1)(b) of the IDD]

1. (2)

   That information may be provided in a standardised format.

For an insurance-based investment product, a firm must provide the information in good time prior to the conclusion of the contract.

[Note: first paragraph of article 29(1) of the IDD]

1. (1)

   A firm must provide the information required by this section in a comprehensible form in such a manner that a client is reasonably able to understand the nature and risks of the investment service and of the specific type of financial instrument or life policy that is being offered and, consequently, to take investment decisions on an informed basis.

2. (2)

   That information may be provided in a standardised format.

[Note: article 24(5) of MiFID and last paragraph of article 29(1) the IDD]

A firm must comply with the rule in COBS 2.2.3R (Disclosure of commitment to the Financial Reporting Council’s Stewardship Code).