Conduct of Business Sourcebook (COBS)
Financial Regulation Courses (FRC)
This course provides a comprehensive understanding of the FCA's Conduct of Business Sourcebook (COBS), a critical part of the UK financial regulatory framework.
COBS outlines the standards and principles that firms must follow when dealing with customers, including rules on client categorisation, financial promotions, conflicts of interest, and more.
The course covers the key requirements for financial institutions, focusing on the principles of Treating Customers Fairly (TCF), promoting clear and transparent communication, and ensuring the best execution of client orders.
By studying COBS, participants will gain a thorough understanding of the legal and ethical guidelines that financial professionals must adhere to, ensuring compliance with the FCA's expectations for firms operating in the UK financial markets.
Syllabus
1. General Provisions and Application of COBS
Introduction to the Conduct of Business Sourcebook, its application to firms and activities, and the rules for client categorisation.
2. Financial Promotion Rules
Explore the requirements for clear, fair, and not misleading communications, including financial promotions and approval processes.
3. Client Categorisation
Understand the criteria for categorising clients as retail, professional, or eligible counterparties, and the associated regulatory protections.
4. Treating Customers Fairly (TCF)
Detailed review of TCF principles, ensuring fair treatment of clients throughout the customer lifecycle, from marketing to post-sale support.
5. Conflicts of Interest
Examine the rules on managing and disclosing conflicts of interest, and the establishment of appropriate internal procedures.
6. Advising and Selling
Overview of the rules governing suitability assessments, advice, and disclosures when selling financial products to clients.
7. Product Governance
Understand the responsibilities of firms in designing and managing financial products, including stress testing and ensuring products meet client needs.
8. Client Assets
Explore the rules on safeguarding client money and assets, including record-keeping, due diligence, and reconciliation procedures.
Learning Outcomes
- Understand FCA Conduct of Business Rules: Explain the main principles of COBS, including client categorisation, financial promotions, and conflicts of interest.
- Apply Financial Promotion Rules: Ensure communications with clients are fair, clear, and not misleading, in compliance with FCA regulations.
- Assess Client Categorisation: Identify the criteria for classifying clients and the corresponding regulatory protections.
- Implement TCF Principles: Ensure firms treat customers fairly throughout the customer lifecycle, focusing on fair outcomes and transparent communications.
- Manage Conflicts of Interest: Develop internal procedures to identify, manage, and disclose conflicts of interest in line with regulatory requirements.
Learning Objectives
- Explain the general provisions and application of COBS to UK firms and their activities.
- Apply the rules for financial promotions, ensuring clear and fair communication with clients.
- Assess the suitability of clients for different levels of protection based on their categorisation.
- Understand the importance of Treating Customers Fairly (TCF) in fostering client trust and compliance.
- Develop strategies to manage conflicts of interest and ensure compliance with FCA requirements.
- Implement effective safeguarding measures for client assets in line with FCA guidelines.
