Entire Section

  • COB A2.1.2 COB A2.1.2

    (1) In the case of a Retail Client, the core information for the purposes of COB A2.1.1(a) is:
    (a) the name and address of the Authorised Firm, and if it is a Subsidiary, the name and address of the ultimate Holding Company;
    (b) the regulatory status of the Authorised Firm;
    (c) when and how the Client Agreement is to come into force and how the agreement may be amended or terminated;
    (d) sufficient details of the service that the Authorised Firm will provide, including where relevant, information about any product or other restrictions applying to the Authorised Firm in the provision of its services and how such restrictions impact on the service offered by the Authorised Firm. If there are no such restrictions, a statement to that effect;
    (e) details of fees, costs and other charges and the basis upon which the Authorised Firm will impose those fees, costs and other charges;
    (f) details of any conflicts of interests for the purposes of disclosure under COB Rule 3.5.1(2)(b);
    (g) details of any Soft Dollar Agreement required to be disclosed under Rules COB 3.5.6 and COB 3.5.7; and
    (h) key particulars of the Authorised Firm's Complaints handling procedures and a statement that a copy of the procedures is available free of charge upon request in accordance with GEN Rule 9.2.11.
    (2) In the case of a Professional Client, the core information for the purposes of COB A2.1.1(a) is the information referred to in (1)(a), (b), (c) and (e).
    Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • COB A2.1.2 Guidance COB A2.1.2 Guidance

      • Fee Disclosure for Retail Clients trading in Restricted Speculative Investments

        1. An Authorised Firm is required, as part of the core information that is included in the Client Agreement under COB App A2.1.2, to disclose all of the detailed fees and charges which a Retail Client will or may incur. An Authorised Firm that Deals in a Restricted Speculative Investment would therefore be expected to disclose under that Rule:
        (a) any trading commissions charged, whether a general commission or a commission on each trade, e.g. on the opening and closing of a trading account;
        (b) if the Authorised Firm adds any mark-up to market prices it receives from an external source, thereby increasing the spread for the Retail Client, the amount of that mark-up or, if the amount cannot be pre-determined, a reasonable range specified as precisely as possible for the relevant class of Restricted Speculative Investments that are being offered;
        (c) any financing charges that are applicable, e.g. daily and overnight financing charges for Restricted Speculative Investments;
        (d) if the Authorised Firm adds a mark-up when calculating any financing charges, the amount of that mark-up; and
        (e) any applicable costs and charges to be applied if the Retail Client is seeking to sell or exit early.
        2. If any material changes are proposed to fees and charges that have been previously disclosed in the Client Agreement, a new fee disclosure statement needs to be given to the Retail Client before making the changes to the fees and charges (see also COB Rule 3.3.3).
        3. An Authorised Firm providing other Financial Services relating to a Restricted Speculative Investment is also required to disclose the fees, charges and commissions relating to those services.
        Derived from DFSA RMI299/2021 (Made 21st April 2021). [VER38/09-21]