Home FCA Handbook COBS COBS 8A COBS 8A.1 Client agreements (MiFID, equivalent third country or optional exemption business)
You are viewing COBS 8A.1 Client agreements (MiFID, equivalent third country or optional exemption business) as of . COBS 8A.1 Client agreements (MiFID, equivalent third country or optional exemption business) was last updated on 06/04/2026.

COBS 8A.1 Client agreements (MiFID, equivalent third country or optional exemption business)

Application and purpose provisions

03/01/2018R

This chapter applies to a firm in relation to its MiFID, equivalent third country or optional exemption business.

23/10/2025G

In order to provide legal certainty and enable clients to better understand the nature of the services with which they are provided, firms that provide investment services or ancillary services to clients should enter into a written basic agreement with the client, setting out the essential rights and obligations of the firm and the client.

23/10/2025G

Certain provisions in this section require firms to provide clients with information ‘in good time’. Guidance on the provision of information ‘in good time’ can be found in COBS 1.4.2G.

Providing a client agreement: retail and professional clients

06/04/2026R
  1. (1) This rule applies to a firm that provides to a client:

    1. (a) an investment service; or

    2. (b) the ancillary service in paragraph 1 of Part 3A of Schedule 2 to the Regulated Activities Order (safekeeping and administration of financial instruments).

  2. (2) A firm must enter into a written basic agreement with the client, on paper or another durable medium.

  3. (3) The requirement in (2):

    1. (a) only applies to a firm that provides investment advice where the firm will undertake a periodic assessment of the suitability of the financial instruments or services recommended;

    2. (b) does not apply to a firm in relation to providing targeted support.

  4. (4) The written agreement in (2) must set out the essential rights and obligations of the firm and the client and must include the following:

    1. (a) a description of the services, and where relevant the nature and extent of any investment advice, to be provided;

    2. (b) if the services covered by the agreement include portfolio management:

      1. (i) the types of financial instruments that may be purchased and sold;

      2. (ii) the types of transactions that may be undertaken on behalf of the client; and

      3. (iii) any instruments or transactions that are prohibited; and

    3. (c) a description of the main features of any services of the type in (1)(b) to be provided, including where applicable:

      1. (i) the role of the firm with respect to corporate actions relating to client instruments; and

      2. (ii) the terms on which securities financing transactions involving client securities will generate a return for the client.

General requirement for information to clients

23/10/2025R
  1. (1) A firm must provide a client with:
    1. (a) the terms of any agreement for the provision of investment services or ancillary services; and
    2. (b) the information required by COBS 6.1ZA.5R and COBS 6.1ZA.8R relating to that agreement or to those investment services or ancillary services.

  2. (2)

     The firm must provide the terms and information in (1):

    1. (a)

       in good time before the client is bound by the agreement; or

    2. (b)

       if earlier, before the provision of the relevant investment services or ancillary services.

23/10/2025R

The information in COBS 8A.1.5R must be provided in a durable medium or by means of a website (where it does not constitute a durable medium) provided that the website conditions are satisfied.

Avoiding duplicate information

23/10/2025G
  1. (1) Rules in COBS 6.1ZA and COBS 14.3A require a firm to provide a client with information about:

    1. (a)

       the firm and its services for clients and potential clients (including information on communications, conflicts of interest and authorised status);

    2. (b)

       financial instruments;

    3. (c)

       safeguarding of client financial instruments or client funds; and

    4. (d)

       costs and associated charges.

  2. (2)

     Provided the information referred to in (1) is communicated to a client in good time before the provision of the service, a firm does not need to provide it either separately or by incorporating it in a client agreement.

  3. (3)

     [deleted]

[Note: recital 84 to MiFID]

Record keeping: client agreements

03/01/2018R

A firm must establish a record that includes the document or documents agreed between it and a client which set out the rights and obligations of the parties, and the other terms on which it will provide services to the client.

[Note: article 25(5) of MiFID]

23/10/2025R

Records which set out the respective rights and obligations of the firm and the client under an agreement to provide services, or the terms on which the firm provides services to the client, must be retained for at least the duration of the relationship with the client.

03/01/2018R

For the purposes of this chapter, a firm may incorporate the rights and duties of the parties into an agreement by referring to other documents or legal texts.

[Note: article 25(5) of MiFID]

03/01/2018G

When considering its approach to client agreements, a firm should be aware of other obligations in the Handbook which may be relevant. These include the fair, clear and not misleading rule, the rules on disclosure of information to a client before providing services (principally in COBS 2.2A, 6.1ZA and 13) and the provisions on record keeping (principally in SYSC 9).