• COBS 6.7 COBS 6.7 Aggregation and Allocation

    • COBS 6.7.1 Application

      The Rules in this section do not apply to an Authorised Person with respect to any Transaction which:

      (a) it undertakes with a Market Counterparty; or
      (b) it carries out for the purposes of managing a Fund of which it is the Fund Manager.

    • COBS 6.7.2 Aggregation of Orders

      An Authorised Person may aggregate an order for a Client with an order for other Clients or with an order for its own account only where:

      (a) it is unlikely that the aggregation will operate to the disadvantage of any of the Clients whose Transactions have been aggregated;
      (b) the Authorised Person has disclosed in writing to the Client that his order may be aggregated and that the effect of the aggregation may operate on some occasions to his disadvantage;
      (c) the Authorised Person has made a record of the intended basis of allocation and the identity of each Client before the order is effected; and
      (d) the Authorised Person has in place written standards and policies on aggregation and allocation which are consistently applied and must include the policy that will be adopted when only part of the aggregated order has been filled.

    • COBS 6.7.3 Allocation of Investments

      Where an Authorised Person has aggregated a Client order with an order for other Clients or with an order for its own account, and part or all of the aggregated order has been filled, it must:

      (a) promptly allocate the Investments concerned;
      (b) allocate the Investments in accordance with the stated intention;
      (c) ensure the allocation is done fairly and uniformly by not giving undue preference to itself or to any of those for whom it dealt; and
      (d) make and maintain a record of:
      (i) the date and time of the allocation;
      (ii) the relevant Investments;
      (iii) the identify of each Client concerned; and
      (iv) the amount allocated to each Client and to the Authorised Person recorded against the intended allocation as required in Rule 6.7.3(b).