CP12/32: Implementation of the Alternative ... - BVCA admin

Annex G
Amendments to the Conduct of Business sourcebook (COBS)
In this Annex underlining indicates new text and striking though indicates deleted text.
2.1 Acting honestly, fairly and professionally
The client's best interests rule
Page 78 of 91
Appendix 1
2.1.1 R (1) A firm must act honestly, fairly and professionally in accordance with
the best interests of its client (the client's best interests rule).
…
(4) This rule applies in relation to:
(a) a full scope UK AIFM of:
(i) a UK AIF;
(ii) an EEA AIF managed or marketed from an establishment
in the United Kingdom; and
(iii) a non-EEA AIF; and
(b) an incoming EEA AIFM branch which manages or markets a UK
AIF.
[Note: article 19(1) of MiFID, and article 14(1)(a) and (b) of the UCITS Directive
and article 12(1)(b) of AIFMD]
Treating investors fairly
2.1.4 R A full scope UK AIFM and an incoming EEA AIFM branch must:
(1) treat all investors in any AIF it manages fairly; and
(2) not allow any investor in an AIF it manages to obtain preferential
treatment, unless such preferential treatment is disclosed in the
relevant AIF’s instrument constituting the fund.
[Note: article 12(1)(f) and article 12(1) first paragraph of AIFMD]
Subordinate measures for alternative investment fund managers
[Note: articles [x] to [y] of the AIFMD level 2 regulation lay down detailed rules
supplementing the relevant provisions of Article 12(1) of AIFMD]