5.1.1. Application of requirement to assess suitability

COB 5.2 applies where an Authorised Firm:

(a)       Advises on Investments;

(b)      Manages Investments; or

(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.