COB 2.3.9 COB 2.3.9(1) An
Authorised Firmmay classify a Personas a Market Counterpartyif:(a) that Personis:(i) a 'deemed' Professional Clientpursuant to COB Rule 2.3.4;(ii) an 'assessed' Professional Clientpursuant to COB Rule 2.3.8(2)(b) which is wholly owned by a Holding Companythat is a 'deemed' Professional Clientpursuant to COB Rule 2.3.4(1)(g) or (h); or(iii) a 'deemed' Market Counterpartypursuant to Rule (1A); and(b) in the case of Personsreferred to in (a)(i) and (ii), the requirements in (2) have been met.(1A) An Insurer, Insurance Intermediaryor Insurance Managermay 'deem' any one or more of the following Personsto be a Market Counterparty:(a) a ceding insurer; and(b) in respect of the services provided to that ceding insurer, any reinsurer, insurance agent or insurance broker that facilitates the provision of the services to the ceding insurer.(2) For the purposes of (1)(b), an Authorised Firmmust, before classifying a Personas a Market Counterparty, ensure that:(a) the Personhas been given a prior written notification of the classification as a Market Counterparty; and(b) that Personhas not requested to be classified otherwise within the period specified in the notice.(3) The notification in (2)(a) may be given in respect of particular Financial Servicesor Transactionsor in respect of all Financial Servicesand Transactions.(4) The notification in (2)(a) need only be given:(a) in the case of a Fund, either to the Fundor its Fund Manager; and(b) in the case of a pension fund, either to such fund or its management company.
COB 2.3.9 Guidance
Authorised Firmcarries on, or provides or obtains, Financial Serviceswith or from another Authorised Firmor a Regulated Financial Institution, as those entities are 'deemed' Professional Clientsunder Rule 2.3.4(1), they could be classified as Market Counterparties, provided the procedures set out in Rule 2.3.9(2) are complied with. For example, such services may include providing the Financial Servicesof custody, managing assets, or fund administration services to a Fund Managerof a Collective Investment Fundor a pension fund.