Entire Section

  • COB 6.5 COB 6.5 Non-market Price Transactions

    • Application

      • COB 6.5.1

        (1) Subject to (2), this section applies to an Authorised Firm conducting Investment Business regardless of the classification of the Client.

        (2) This section does not apply to a Client to whom a Person operating an MTF provides its MTF services.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
        [Amended] DFSA RM123/2013 (Made 13th June 2013) [VER22/07-13]

    • General Prohibition

      • COB 6.5.2

        (1) An Authorised Firm must not enter into a non-market price Transaction in any capacity, with or for a Client, unless it has taken reasonable steps to ensure that the Transaction is not being entered into by the Client for an improper purpose.
        (2) The requirement in (1) does not apply in relation to a non-market price Transaction subject to the Rules of an Authorised Market Institution or regulated exchange.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • Record Keeping

      • COB 6.5.3 COB 6.5.3

        An Authorised Firm must make and retain, for a minimum of six years, a record of the steps it has taken in relation to each Transaction under this section.

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

        • COB 6.5.3 Guidance

          1. A non-market price Transaction is a Transaction where the dealing rate or price paid by the Authorised Firm or its Client differs from the prevailing market rate or price to a material extent or the Authorised Firm or its Client gives materially more or less in value than it receives in return.
          2. In general, Authorised Firms should undertake transactions at the prevailing market price. Failure to do this may result in an Authorised Firm participating, whether deliberately or unknowingly, in the concealment of a profit or loss, or in the perpetration of a fraud.
          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]