COB 12
Lloyd's
COB 12.1
Application
- 01/12/2004
COB 12.1.1
See Notes
This chapter applies to a firm when it carries on any of the following activities:
- (1) advising on syndicate participation at Lloyd's or agreeing to carry on that regulated activity;
- (2) managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's or agreeing to carry on that regulated activity;
- (3) carrying on designated investment business in relation to funds at Lloyd's;
- (4) communicating or approving a financial promotion in relation to:
- (a) the underwriting capacity of a Lloyd's syndicate; or
- (b) membership of a Lloyd's syndicate; or
- (c) effecting or carrying out life policies written at Lloyd's; or
- (d) any of the activities specified in (1) or (3).
- 14/01/2005
COB 12.1.2
See Notes
Underwriting
agents should be aware that the Society's regulatory
requirements remain applicable to them even if these requirements cover similar
matters to the applicable COB provisions.
- 01/12/2001
COB 12.1.3
See Notes
This chapter does not affect the application
of COB to
a firm when
carrying on activities other than those specified in COB
12.1.1 R.
- 01/12/2001
COB 12.1.4
See Notes
The Society is
itself also required to comply with the requirements of INSPRU which contains rules and guidance in respect of areas where COB provisions also have
relevance. In particular
LLD 4.2.1 R
places a requirement
on the Society to
make appropriate byelaws governing
conduct in the capacity
transfer market.
LLD also
imposes at LLD
9.2.3 R a requirement
on the Society to
comply with the standards of due care and diligence set out in CASS in relation to the custody of assets that
constitute members' funds.
- 01/12/2001
Purpose
COB 12.1.5
See Notes
The purpose of this chapter is to protect
the interests of members or
potential members and policyholders or potential policyholders.
- 01/12/2001
COB 12.1.6
See Notes
This chapter provides rules that apply to firms when carrying on the activities in COB
12.1.1 R. Rules from other chapters are modified for
this purpose. These COB provisions
will apply to the activities of members'
agents, members'
advisers, the Society, managing agents (in some
circumstances) and to any other authorised
person undertaking any of the activities specified in COB
12.1.1 R.
- 01/12/2001
Rules of general application
COB 12.1.7
See Notes
- (1) When a firm is carrying on any of the activities specified in COB 12.1.1 R (1), COB applies in full, except to the extent disapplied under COB 12.1.14 R.
- (2) COB does not apply to a firm when carrying on the activity specified in COB 12.1.1 R (2), except as specified in COB 12.1.15 R.
- (3) COB 3 applies to a firm when carrying on the activity specified in COB 12.1.1 R (4).
- 01/12/2001
COB 12.1.8
See Notes
Firms subject
to the financial promotion
rules under COB 12 are
also reminded that syndicate business
plans may be used in ways that bring them within the definition of a financial promotion. In
such cases the financial
promotion rules will apply, in particular COB 3.6 (Confirmation of compliance), COB 3.7 (Records)
and COB
3.8 (Form and content of financial promotions).
- 01/12/2001
COB 12.1.9
See Notes
A firm which
provides advice to a person on
a transaction in the capacity
transfer market will be carrying on the activity specified in COB 12.1.1 R (1) and will be subject
to COB, as
specified in COB 12.1.7 R (1) in
respect of that activity.
- 01/12/2001
COB 12.1.10
See Notes
COB does not apply to a firm when carrying on the regulated activity of arranging (bringing about) deals in investments that relate to the underwriting capacity of a Lloyd's syndicate or membership of a Lloyd's syndicate.
- 01/12/2001
COB 12.1.11
See Notes
A firm carrying
on the activity specified at COB 12.1.1 R (1) must,
in addition to meeting the requirements of COB 5, take reasonable steps
to ensure that it does not advise a potential member who is a private customer to become a member of a syndicate unless membership
of the Society itself
is suitable for the private
customer having regard to the facts disclosed by him and other
relevant facts about the private
customer of which the firm is
or reasonably should be aware.
- 01/12/2001
Definitions and modifications
COB 12.1.12
See Notes
When a firm is carrying on activities to which this chapter applies, any reference in COB to the term:
- (1) "designated investment" is to be taken to include the following specified investments:
- (a) the underwriting capacity of a Lloyd's syndicate;
- (b) membership of a Lloyd's syndicate; and
- (c) rights to or interests in the specified investments in (a) or (b);
- (2) "designated investment business" is to be taken to include the following regulated activities:
- (a) advising on syndicate participation at Lloyd's;
- (b) managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's; and
- (c) agreeing to carry on the regulated activities in (a) or (b).
- 01/12/2001
COB 12.1.13
See Notes
When a firm is carrying on activities to which this
chapter applies, any reference in COB to
the term customer is
to be taken to refer to a member or
potential member except
in the case of COB 6.7 (Cancellation and
withdrawal) to COB 6.8 (Insurance Contracts:
life and general) where it refers to a policyholder or
potential policyholder.
- 01/12/2001
COB 12.1.14
See Notes
This table disapplies parts of COB to a firm when carrying on the activities to which COB 12.1.7 R (1) relates.
| Chapter | Description | Disapplication |
| 4.2 | Terms of business and client agreements with customers | COB 4.2.11 E and COB 4.2.12 R are disapplied. |
| 6 | Product disclosure and the customer's right to cancel or withdraw | COB 6 is disapplied. |
| 8.2 | Periodic statements | COB 8.2 is disapplied to a firm advising on syndicate participation at Lloyd's. COB 8.2.7 is disapplied to the Society. |
| [deleted] | [deleted] | [deleted]. |
| 11 | Trustee and depositary activities | COB 11 is disapplied. |
- 01/01/2004
COB 12.1.15
See Notes
This table applies COB to firms when carrying on the activity to which COB 12.1.7 R (2) relates except where ICOB applies in relation to non-investment insurance contracts.
| Chapter | Description | Application |
| 1 | Application and general provisions | Applied |
| 2 | Rules which apply to all firms conducting designated investment business | Applied |
| 4.1 | Client classification | Applied |
| 6.7 | Cancellation and withdrawal | Applied |
| 6.8 | Insurance contracts - life policies |
Applied |
| 8A | Claims handling | Applied |
- 14/01/2005
COB 12.1.16
See Notes
The tables at COB
12.1.17 G to COB
12.1.21 G are
provided to help firms when
carrying on those activities to which this chapter applies locate those
rules that are particularly
relevant to their activities. Firms should
be aware that these tables may not include all rules which apply to an individual firm as these will vary
depending on the firm's particular
circumstances and that there may be other
rules that apply.
- 14/01/2005
COB 12.1.17
See Notes
Location of rules of general application to firms when carrying on activities to which this chapter applies.
This table forms part of COB 12.1.16 G.
| Chapter | Description |
| COB 1 | Application and general provisions |
| COB 2 | Rules which apply to all firms conducting designated investment business |
| COB 4.1 | Client classification |
- 01/12/2001
COB 12.1.18
See Notes
Location of rules of particular relevance to a firm when advising on syndicate participation at Lloyd's.
This table forms part of COB 12.1.16 G.
| Chapter | Description |
| COB 4.2.1 R to COB 4.2.10 R (inclusive), COB 4.2.13 R to COB 4.2.14 R | Terms of business and customer agreements |
| COB 5 | Advising and selling |
| COB 7.1 | Conflict of interest and material interest |
- 01/12/2001
COB 12.1.19
See Notes
Location of rules of particular relevance to a firm when carrying on designated investment business in relation to funds at Lloyd's.
This table forms part of COB 12.1.16 G.
| Chapter | Description |
| COB 4.2.1 R to COB 4.2.10 R (inclusive), COB 4.2.13 R and COB 4.2.14 R | Terms of business and customer agreements |
| COB 7 | Dealing and managing |
| COB 8.1 | Confirmation of transactions |
| COB 8.2.1 to COB 8.2.6 (inclusive) and COB 8.2.9 | Periodic statements |
- 01/12/2001
COB 12.1.20
See Notes
Location of rules of particular relevance to a firm managing the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's.
This table forms part of COB 12.1.16 G.
| Chapter | Description |
| COB 6.7 | Cancellation and withdrawal |
| COB 6.8 | Insurance contracts - life policies |
| ICOB | Insurance: Conduct of Business Sourcebook |
- 14/01/2005
COB 12.1.21
See Notes
Location of rules of particular relevance to a firm when communicating or approving financial promotions in relation to the investments and activities specified at COB 12.1.1 R (4).
This table forms part of COB 12.1.16 G.
| Chapter | Description |
| COB 3 | Financial promotion |
- 01/12/2001