• COBS 6.6 COBS 6.6 Non-market Price Transactions

    • COBS 6.6.1 General Prohibition

      Except in relation to:

      (a) a non-market price Transaction subject to the Rules of a Recognised Investment Exchange; or
      (b) Fund Investment Managers pursuing a strategy that involves the buying, selling or holding of securities that are not publicly listed or traded or readily saleable, an Authorised Person must not enter into a non-market price Transaction in any capacity, with or for a Client, unless it has taken reasonable steps to ensure that the Transaction is not being entered into by the Client for an improper purpose.

    • COBS 6.6.2 Definition

      (a) A non-market price Transaction is a Transaction where the dealing rate or price paid by the Authorised Person or its Client differs from the prevailing market rate or price (after taking into account all costs) to a material extent or the Authorised Person or its Client gives materially more or less in value than it receives in return.
      (b) Authorised Persons must undertake transactions at the prevailing market price. Failure to do this may result in an Authorised Person participating, whether deliberately or unknowingly, in the concealment of a profit or loss, or in the perpetration of a fraud.