• COBS 6.2 COBS 6.2 Personal Account Transactions

    • COBS 6.2.1

      An Authorised Person must establish and maintain adequate policies and procedures so as to ensure that:

      (a) an Employee does not undertake a Personal Account Transaction unless:
      (i) the Authorised Person has, in a written notice, drawn to the attention of the Employee the conditions upon which the Employee may undertake Personal Account Transactions and that the contents of such a notice are made a term of his contract of employment or services;
      (ii) the Authorised Person has given its written permission to that Employee for that transaction or to transactions generally in Investments of that kind; and
      (iii) the transaction will not conflict with the Authorised Person's duties to its Clients;
      (b) it receives prompt notification or is otherwise aware of each Employee's Personal Account Transactions; and
      (c) if an Employee's Personal Account Transactions are conducted with the Authorised Person, each Employee's account must be clearly identified and distinguishable from other Clients' accounts.

    • COBS 6.2.2

      The written notice in Rule 6.2.1(a)(i) must make it explicit that, if an Employee is prohibited from undertaking a Personal Account Transaction, he must not, except in the proper course of his employment:

      (a) procure another Person to enter into such a Transaction; or
      (b) communicate any information or opinion to another Person if he knows, or ought to know, that the Person will as a result, enter into such a Transaction or procure some other Person to do so.

    • COBS 6.2.3

      Where an Authorised Person has taken reasonable steps to ensure that an Employee will not be involved to any material extent in, or have access to information about, the Authorised Person's Investment Business, then the Authorised Person need not comply with the requirements in Rule 6.2.1 in respect of that Employee.

    • COBS 6.2.4

      An Authorised Person must establish and maintain procedures and controls so as to ensure that an Investment Analyst does not undertake a Personal Account Transaction in an Investment if the Investment Analyst is preparing Investment Research:

      (a) on that Investment or its Issuer; or
      (b) on a related investment, or its Issuer,

      until the Investment Research is published or made available to the Authorised Person's Clients.