5.1.1. Application of requirement to assess suitability

COB 5.2 applies where an Authorised Firm:

1. (a) Advises on Investments;
2. (b) Manages Investments; or
3. (c) Provides Trust Services (subject to COB 5.2.8)

5.1.2. Application of requirement to assess appropriateness

COB 5.3 applies where an Authorised Firm is:

• (a) Dealing in Investments as Principal;
• (b) Dealing in Investments as Agent, or
• (c) receiving and transmitting orders for a Client, and is not Advising on Investments or Managing Investments.

Guidance: Receiving and transmitting orders An Authorised Firm carries on this activity of "receiving and transmitting orders" if it both receives an order from a Client for a transaction in an Investment and transmits it to another party, such as a broker, for execution or for onward transmission to the executing broker or venue.

5.1.3. Market Counterparties

COB 5 does not apply where the Authorised Firm provides a Financial Service to a Market Counterparty.