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COBS 4.1 Application

Who? What?

29/07/2022R

This chapter applies to a firm:

  1. (1)

    communicating with a client in relation to its designated investment business (other than MiFID, equivalent third country or optional exemption business);

  2. (1A)

    communicating with a client in relation to its MiFID, equivalent third country or optional exemption business;

  3. (2)

    communicating or approving a financial promotion other than:

    1. (a)

      a financial promotion of qualifying credit, a home purchase plan or a home reversion plan; or

    2. (b)

      a financial promotion in respect of a non-investment insurance contract; or

    3. (c)

      a promotion of an unregulated collective investment scheme that would breach section 238(1) of the Act if made by an authorised person (firms may not communicate or approve such promotions); or

    4. (d)

      a financial promotion in relation to a credit agreement, a consumer hire agreement or a credit-related regulated activity; or

    5. (e)

      a financial promotion in relation to a funeral plan contract or a regulated funeral plan activity.

  4. (3)

    when a MiFID investment firm or a credit institution is communicating in connection with selling, or advising clients in relation to, structured deposits as specified by COBS 1.1.1AAR.

30/04/2011R

COBS 4.4.3R applies to a firm with respect to the activity of issuing electronic money.

28/11/2023G

A firm is reminded of its obligations under the naming and marketing rules in ESG 4.3 (in particular, ESG 4.3.1R) when it:

  1. (1)

    communicates or approves a financial promotion that references the sustainability characteristics of a product or service; or

  2. (2)

    undertakes sustainability in-scope business in relation to a sustainability product.

06/08/2010G
  1. (1)

    This chapter applies in relation to an authorised professional firm in accordance with COBS 18 (Specialist regimes).

  2. (2)

    This chapter applies, to a limited extent, in relation to communicating or approving a financial promotion that relates to a deposit if the deposit is a structured deposit, cash deposit ISA or cash deposit CTF.

01/11/2007G

A firm is required to comply with the financial promotion rules in relation to a financial promotion communicated by its appointed representative even where the financial promotion does not require approval because of the exemption in article 16 of the Financial Promotion Order (Exempt persons).

[Note: see section 39 of the Act]

23/10/2025G

  1. (1)

     In COBS 4.3.1 R, the defined term "financial promotion" includes:

    1. (a)

       in relation to MiFID, equivalent third country or optional exemption business, all communications that are marketing communications within the meaning of MiFID; and

    2. (b)

       in relation to insurance distribution, all communications that are marketing communications within the meaning of IDD.

  2. (2)

     In the case of MiFID, equivalent third country or optional exemption business, certain requirements in this chapter are subject to an exemption for the communication of a third party prospectus in certain circumstances. This has a similar effect to the exemption in article 70(1)(c) of the Financial Promotion Order, which is referred to in the definition of an excluded communication.

  3. (3)

     In this chapter “financial promotion” and “direct offer financial promotion” include communications that are marketing communications for the purposes of the UCITS Directive.

Who? What?

03/01/2018G

A firm communicating with an eligible counterparty should have regard to the application of COBS to eligible counterparty business (COBS 1 Annex 1 Part 1).

03/01/2018G

Approving a financial promotion without communicating it (which includes causing it to be communicated) is not MiFID, equivalent third country or optional exemption business. Communicating a financial promotion to a person, such as a corporate finance contact or a venture capital contact, who is not a client within the meaning of COBS 3.2.1 R (1), COBS 3.2.1 R (2) or COBS 3.2.1 R (4) in respect of the MiFID, equivalent third country or optional exemption business to which the financial promotion relates, is also not MiFID, equivalent third country or optional exemption business. Further guidance on what amounts to MiFID business may be found in PERG 13.

23/10/2025G

A reference in this chapter to MiFID, equivalent third country or optional exemption business includes a reference to communications that occur before an agreement to perform services in relation to MiFID, equivalent third country or optional exemption business.

Who? What? Application to registered persons promoting qualifying cryptoassets

08/10/2023R
  1. (1)

    This chapter applies to a registered person communicating a financial promotion relating to one or more qualifying cryptoassets (in reliance on the exemption in article 73ZA of the Financial Promotion Order) as it applies to an authorised person communicating a financial promotion relating to one or more qualifying cryptoassets.

  2. (2)

    For the purpose of (1), relevant references in this chapter to a firm include reference to a registered person.

  3. (3)

    Where a rule in the Handbook applies to a registered person communicating a financial promotion relating to one or more qualifying cryptoassets, relevant references to a client include reference to a person to whom a financial promotion is, or is likely to be, communicated by the relevant registered person.

  4. (4)

    A registered person must establish, implement and maintain adequate policies and procedures sufficient to ensure its compliance with its obligations under the rules when communicating financial promotions relating to qualifying cryptoassets.

08/10/2023G
  1. (1)

    COBS 4.1.7CR(1) requires a registered person to comply with the relevant rules in this chapter on the form and content of financial promotions (including those in COBS 4.12A). It also requires a registered person to make records of the financial promotions it communicates in compliance with the relevant rules in COBS 4.11 (Record keeping: financial promotion).

  2. (2)

    There are other requirements outside this chapter which apply to registered persons communicating financial promotions relating to qualifying cryptoassets, including:

    1. (a)

      Principle 7 (Communications with clients);

    2. (b)

      GEN 1.2 (Referring to approval by the FCA); and

    3. (c)

      GEN 4.5 (Statements about authorisation and regulation by the appropriate regulator).

08/10/2023G

The exemption in article 73ZA of the Financial Promotion Order does not give rise to a type of excluded communication.

Where? General position

01/11/2007R

  1. (1)

    In relation to communications by a firm to a client in relation to its designated investment business this chapter applies in accordance with the general application rule and the rule on business with UK clients from an overseas establishment (COBS 1 Annex 1 Part 2 paragraph 2.1R).

  2. (2)

    In addition, the financial promotion rules apply to a firm in relation to:

    1. (a)

      the communication of a financial promotion to a person inside the United Kingdom;

    2. (b)

      the communication of a cold call to a person outside the United Kingdom, unless:

      1. (i)

        it is made from a place outside the United Kingdom; and

      2. (ii)

        it is made for the purposes of a business which is carried on outside the United Kingdom and which is not carried on in the United Kingdom; and

    3. (c)

      the approval of a financial promotion for communication to a person inside the United Kingdom.

01/11/2007G

Firms should note the territorial scope of this chapter is also affected by:

  1. (1)

    the disapplication for financial promotion s originating outside the United Kingdom that are not capable of having an effect within the United Kingdom (section 21(3) of the Act (Restrictions on financial promotion)) (see the defined term “excluded communication”);

  2. (2)

    the exemptions for overseas communicators (see the defined term “excluded communication”); and

  3. (3)

    the rules on financial promotions with an overseas element (see COBS 4.9).