The FSA has published issue 11 of its Financial Advisers newsletter. Included in the newsletter is a brief article that covers the new Conduct of Business sourcebook (COBS) and MiFID. Here the FSA mentions the guide to COBS for small firms (the Guide) which was published in August 2007. The Guide set out key changes in areas such as client categorisation, communications and financial promotions, client agreements, Initial Disclosure Document (IDD) and Menu, suitability, preparing and providing product information, training and competence, and complaints.
The article also mentions that the UK secured an opt-out from MiFID for financial advisers. This means that UK financial advisers are not automatically subject to MiFID obligations. However, where a UK financial adviser is advising clients located in another EEA State it must ensure that it satisfies the legal requirements of that State. It can opt in to MiFID to obtain a passport for such services. This will prevent it possibly needing authorisation in other Member States for those matters covered by the passport. For further information on passporting the article refers to the August 2007 factsheet, Financial Advisers and Passporting.
View Financial advisers newsletter - Issue 11, (PDF 40.9KB), 20 November 2007