Entire Section

  • COB 3.2 COB 3.2 Communication of Information and Marketing Material

    • General

      • COB 3.2.1

        When communicating information to a Person in relation to a financial product or financial service, an Authorised Firm must take reasonable steps to ensure that the communication is clear, fair and not misleading.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • COB 3.2.2

        An Authorised Firm must not, in any form of communication with a Person, including an agreement, attempt to limit or avoid any duty or liability it may have to that Person or any other Person under legislation administered by the DFSA.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
        [Amended] DFSA RM154/2015 (Made 9th December 2015) [VER25/02-16]

      • COB 3.2.3

        Where a Rule in COB requires information to be sent to a Client, the Authorised Firm must provide that information directly to the Client and not to another Person, unless it is on the written instructions of the Client.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • Guidance

        In Rule 3.2.2, a communication would include a financial promotion, a client agreement, terms of business, financial product terms and conditions, a mandate, power of attorney entered into for the purposes of a financial service or product and any other communication which relates in whole or in part to the provision of a financial service or product.

        Derived from DFSA RM154/2015 (Made 9th December 2015) [VER25/02-16]

    • Marketing Material

      • COB 3.2.4

        (1) An Authorised Firm must ensure that any marketing material communicated to a Person contains the following information:
        (a) the name of the Authorised Firm communicating the marketing material or, on whose behalf the marketing material is being communicated;
        (b) the Authorised Firm's regulatory status as required under GEN section 6.4; and
        (c) if the marketing material is intended only for Professional Clients or Market Counterparties, a clear statement to that effect and that no other Person should act upon it.
        (2) In (1), marketing material includes any invitation or inducement to enter into an agreement:
        (a) in relation to a financial product or to engage in a Financial Service with the Authorised Firm; or
        (b) in relation to a financial product or financial service offered by a Person other than the Authorised Firm.
        (3) An Authorised Firm which communicates marketing material in (2)(b) must:
        (a) ensure that the marketing material complies with the applicable Rules and any legislation administered by the DFSA; and
        (b) not distribute such marketing material if it becomes aware that the Person offering the financial product or financial service to which the material relates is in breach of the regulatory requirements that apply to that Person in relation to that product or service.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
        [Amended] DSFA RM185/2016 (Made 7th December 2016). [VER28/02-17]

      • COB 3.2.5

        An Authorised Firm must take reasonable steps to ensure that:

        (a) any marketing material intended for Professional Clients is not sent or directed to any Persons who are not Professional Clients; and
        (b) no Person communicates or otherwise uses the marketing material on behalf of the Authorised Firm in a manner that amounts to a breach of the requirements in this section.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • Past Performance and Forecasts

      • COB 3.2.6 COB 3.2.6

        An Authorised Firm must ensure that any information or representation relating to past performance, or any future forecast based on past performance or other assumptions, which is provided to or targeted at Retail Clients:

        (a) presents a fair and balanced view of the financial products or financial services to which the information or representation relates;
        (b) identifies, in an easy to understand manner, the source of information from which the past performance is derived and any key facts and assumptions used in that context are drawn; and
        (c) contains a prominent warning that past performance is not necessarily a reliable indicator of future results.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

        • COB 3.2.6 Guidance

          In presenting information relating to past performance of a financial product or financial service, the Authorised Firm should follow, to the extent relevant, the Global Investment Performance Standards (GIPS) issued by Institute of Chartered Financial Analysts of the USA or a reputable independent actuarial, financial or statistical reporting service provider.

          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]