• COBS 6.4.4 COBS 6.4.4 Restriction on Own Account Transactions

    (a) An Authorised Person or its Associate must not knowingly execute an Own Account Transaction in an Investment or related Investments, which is the subject of Investment Research, prepared either by the Authorised Person or its Associate, until the Clients for whom the Investment Research was principally intended have had a reasonable opportunity to act upon it.
    (b) The restriction in Rule 6.4.4(a) does not apply if:
    (i) the Authorised Person or its Associate is a Market Maker in the relevant Investment;
    (ii) the Authorised Person or its Associate undertakes an Execution-Only Transaction for a Client; or
    (iii) it is not expected to materially affect the price of the Investment.

    • Guidance

      The exceptions in Rule 6.4.4(b) allow an Authorised Person to continue to provide key services to the market and to its Clients even if the Authorised Person would be considered to have knowledge of the timing and content of the Investment Research which is intended for publication to Clients, for example when it is impractical for an Authorised Person to put in place an information barrier because the Authorised Person has few Employees or cannot otherwise separate its functions.