Entire Section

  • Assessment of knowledge and experience

    • COB 2.4.3 COB 2.4.3

      (1) For the purpose of the analysis required under Rules 2.3.7(1)(b)(ii) and 2.3.8(1)(b), an Authorised Firm must include, where applicable, consideration of the following matters:
      (a) the Person's knowledge and understanding of the relevant financial markets, types of financial products or arrangements and the risks involved either generally or in relation to a proposed Transaction;
      (b) the length of time the Person has participated in relevant financial markets, the frequency of dealings and the extent to which the Person has relied on professional financial advice;
      (c) the size and nature of transactions that have been undertaken by, or on behalf of, the Person in relevant financial markets;
      (d) the Person's relevant qualifications relating to financial markets;
      (e) the composition and size of the Person's existing financial investment portfolio;
      (f) in the case of credit or insurance transactions, relevant experience in relation to similar transactions to be able to understand the risks associated with such transactions; and
      (g) any other matters which the Authorised Firm considers relevant.
      (2) Where the analysis is being carried out in respect of an Undertaking, the analysis must be applied, as appropriate, to those individuals who are authorised to undertake transactions on behalf of the Undertaking.
      Derived from DFSA RM149/2015 (Made 11th February 2015) [VER24/04-15]

      • COB 2.4.3 Guidance

        Generally, an Authorised Firm may consider a Person to have relevant experience and understanding where such a Person:

        a. has been involved in similar transactions in a professional or personal capacity sufficiently frequently to give the Authorised Firm reasonable assurance that the Person is able to make decisions of the relevant kind, understanding the type of risks involved; or
        b. is found to be acting, in relation to the particular transaction involved, in reliance on a recommendation made by an Authorised Firm or Regulated Financial Institution.
        Derived from DFSA RM149/2015 (Made 11th February 2015) [VER24/04-15]