The Rules in this section do not apply to an
Authorised Firmwhen it is:(a) carrying on a Financial Servicewith or for a Market Counterparty;(b) Accepting Deposits;(c) Providing Credit;(d) carrying on an activity of the kind described in GEN Rule 2.26.1 that constitutes marketing;(e) a Fund Managerof a Fund Offeringthe Unitsof a Fundit manages.(f) Operating an Employee Money Purchase Scheme; or(g) Acting as the Administrator of an Employee Money Purchase Scheme..
COB 3.3.2 COB 3.3.2(1) Subject to (2), an
Authorised Firmmust not carry on a Financial Servicewith or for a Personunless:(a) there is a Client Agreementcontaining the key information specified in App2 which is either entered into:(i) between the Authorised Firmand that Person; or(ii) in accordance with the requirements in Rule 3.3.4; and(b) before entering into the Client Agreementwith the Person, the Authorised Firmhas provided to that Personthe key information referred to in (a) in good time to enable him to make an informed decision relating to the relevant Financial Service.(2) An Authorised Firmmay provide a Financial Serviceto a Clientwithout having to comply with the requirement in (1);(a) subject to (3), where it is, on reasonable grounds, impracticable to comply; or(b) where the Clienthas expressly agreed to dispense with the requirement in regard to a personal investment vehicle.(3) When (2)(a) applies, an Authorised Firmproviding the Financial Servicemust:(a) first explain to the Personwhy it is impracticable to comply; and(b) enter into a Client Agreementas soon as practicable thereafter.
COB 3.3.2 Guidance1. App 2 sets out the core information that must be included in every
Client Agreementand additional disclosure for certain types of activities to which this chapter applies. The information content for Client Agreementswith Retail Clientsis more detailed than for Professional Clients.2. For the purposes of COB Rule 3.3.2(1)(b), an Authorised Firmmay either provide a Personwith a copy of the proposed Client Agreement, or give that information in a separate form. If there are any changes to the terms and conditions of the proposed agreement, the Authorised Firmshould ensure that the Client Agreementto be signed with the Personaccurately incorporates those changes.3. For the purposes of COB Rule 3.3.2(2)(a), an Authorised Firmmay consider it is reasonably impracticable to provide the key information to a Personif that Personrequests the Authorised Firmto execute a Transactionon a time critical basis. Where an Authorised Firmhas given the explanation referred to in COB Rule 3.3.2(3)(a) verbally, it should maintain records to demonstrate to the DFSA that it has provided that information to the Client.Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]