18 Appendix 1 Investigation and Fees for Collective Portfolio Managers 18 Appendix 2 Administration: Client Orders and Transactions.
Structured deposits: further provisions
Electronic money
Application to TP firms and Gibraltar-based firms
Auction regulation bidding
Modifications to the general application rule
Guidance
Markets in Financial Instruments Directive
In this sourcebook, where a reproduced provision in an article of the MiFID Org Regulation refers to another part of the MiFID Org Regulation, the other provision must also be read with reference to the table in (2). Firms to which provisions of the MiFID Org Regulation apply as if they were regulations should use the text of any preamble to the relevant provision marked "UK" to help interpret such references or cross-references.
Interpretation – “in good time”
Insurance distribution
There are also other provisions in this sourcebook which require information to be given "in good time", for example■COBS 6.1ZA.19AR. In determining what constitutes provision of information "in good time", a firm should, taking into account the urgency of the situation, take into account the client's need for sufficient time to read and understand the information before making an investment decision.
Application (see COBS 1.1.2R) 1
- What?
- Transactions between an MTF operator and its users
- Transactions concluded on an MTF
- Transactions concluded on a regulated market
- Consumer credit products
- Use of third party processors in life insurance distribution activities
- Modified meaning of regulated activities for UK AIFMs and UK UCITS management companies
- Where?
- Business with UK clients from overseas establishments
- Guidance
- The main extensions, modifications and restrictions to the general application
- MiFID: effect on territorial scope [deleted] 1
- SRD: effect on territorial scope[deleted]
- Conduct of business
- Acting honestly, fairly and professionally
1 2.1 R The COBS provisions (applicable to MiFID business) set out below do not apply to transactions between an MTF operator and a member or participant relating to the use of the MTF. 5A.1 R The rule in paragraph 5A.2R applies in relation to an MCD credit agreement with a consumer that is subject to the provisions relating to the assessment of consumer credit in Chapter 6 of the MCD (which have been transferred to MCOB 11 and MCOB 11A).
The client's best interests rule
Business with eligible counterparties
Exclusion of liability
AIFMs’ best interests rules
Subordinate measures for alternative investment fund managers
Information disclosure before
Application
Information disclosure before providing services
A company subject to the provision of relevant information rule (■COBS 2.2.1 R) should also comply with the rules on disclosure of information about the company, its services, costs and related charges and dedicated investments in ■COBS 6.1 and■COBS 14.
Disclosure of commitment to the Financial Reporting Council’s Stewardship Code
A Information disclosure before providing services (MiFID and
This section applies to a firm:. in relation to its MiFID, equivalent third country or optional exemption business;. insurance distribution activities relating to:. a) an insurance-based investment product for any customer; and/or (b) any other life policy for a retail customer, but as regards the matters.
Information disclosure in good time
This part applies to a company:. in relation to its MiFID, equivalent third country or optional exemption activities;. conducting insurance distribution activities in relation to:. a) an insurance-based investment product for each client; and/or (b) any other life insurance policy for a retail client, except for business. the specific type of financial instrument or life insurance offered, and therefore to make informed investment decisions.
Related rules
B SRD requirements
Application: Who?
Application: What?
Application: Where?
Engagement policy and disclosure of information
2) (a) Subject to (b), a company must publicly disclose how it has cast votes at general meetings of companies in which it owns shares. A company is not required to disclose votes that are insignificant due to the subject of the vote or the size of the share in the company.
Transparency of asset managers
Inducements relating to business other than MiFID, equivalent third
Interpretation
This section does not apply to the provision of independent advice or limited advice on a retail investment product under MiFID, a third country equivalent or an optional exemption. A firm offering such a service should instead refer to ■COBS 2.3A (MiFID Incentives, Third Country Equivalent or Optional Exemption) and.
Rule on inducements
Guidance on inducements
For the purposes of this section, a non-monetary benefit shall include the designation or referral by a firm of an actual or potential item of designated investment business to another person, either on its own initiative or at the direction of an associate. The fact that a fee, commission or non-monetary benefit is paid or provided to or by an appointed representative does not prevent the application of the rule on inducements.
Paying commission on non-advised sales of packaged products
Providing credit and other benefits to businesses that make personal recommendations on retail investment products or P2P.
Providing credit and other benefits to firms that give personal recommendations on retail investment products or P2P
For the purposes of this evidence provision, for the purposes of (2) and (3), any interest or credit provided by a retail investment product provider or electronic system operator in relation to an affiliate of the lender shall be treated as the owner of, or credit provided by, that investment product provider. of products for small investors or the operator of an electronic system related to lending. Where a retail investment product provider or electronic lending system operator or its affiliate provides credit to a retail client of a business that makes personal recommendations in relation to retail products or P2P agreements or gives advice or provides services to an employer in connection with group personal pension scheme or stakeholder group pension scheme, this may create an indirect benefit for the company and, to the extent relevant, the provider of retail investment products or the operator of an electronic system in relation to lending may have to consider the cases in ■COBS 2.3.12Eas if would provide credit to the company.
Reasonable non-monetary benefits
11 A provider of retail investment products provides information to another company about sources of mortgage financing. A provider of retail investment products that provides another company with training facilities of any kind (for example, lectures, venue, written materials and software).
Application of guidance on reasonable non-monetary benefits
When interpreting the table of reasonable non-monetary benefits, a company that makes a personal recommendation in relation to a retail investment product to a retail customer or provides advice or provides a service to an employer in connection with a collective personal pension scheme or a group stakeholder pension scheme should be aware that acceptance of services that the company must rely on for a period of time are more likely to impair compliance with the customer's best interest. For example, accepting services that provide access to another company's systems or software that the company must rely on to access the company's customer data in the future is likely to conflict with the inducement rule (■COBS 2.3.1R ).
Record keeping: inducements
A Inducements relating to MiFID, equivalent third country or
Relationship with the adviser charging, product provider and platform service provider rules in COBS 6.1A, COBS 6.1B and
Rules on inducements
A company that does not comply with ■COBS 2.3A.5 may be considered to be in breach of its obligations related to:. Fees, commissions or non-monetary benefits intended to improve the quality of a service.
Fees, commissions or non-monetary benefits which are designed to enhance the quality of a service
Fees, commissions or non-monetary benefits designed to improve the quality of a service. appropriate number of financial instruments or insurance-based investment products from third-party product providers not closely linked to the company or. a) an offer to the customer, at least on an annual basis, to assess the continued suitability of the financial instruments or insurance-based investment products in which the customer has invested; or (b) another ongoing service that is likely to be of value to the customer. such as advising on the optimal asset allocation proposed by the client; or.
Additional requirements for the assessment of inducements
Note: article 11(2) of the MiFID Delegated Directive]. b) whether the incentive or incentive scheme is based exclusively or predominantly on quantitative commercial criteria and whether it takes into account appropriate qualitative criteria, reflecting compliance with applicable regulations, the quality of services provided to customers and customer satisfaction;. c) the value of the incentive paid or received in relation to the value of the product and the services rendered;. d) whether the incentive is paid entirely or mainly at the moment of the conclusion of the insurance contract or extends over the entire term of that contract;. e) the existence of an appropriate mechanism to reclaim the incentive in case the product expires or is surrendered at an early stage or if the interests of the customer are harmed;. f) the existence of any form of variable or conditional threshold or any other type of value accelerator that is unlocked by reaching a target based on volume or value of sales. 2(2)"incentive" means any fee, commission or any non-monetary benefit provided by or to such intermediary or undertaking in connection with the distribution of an insurance-based investment product, to or by any party other than the relevant customer in the relevant transaction or a person acting on behalf of that customer;.
Disclosure of payments or benefits received from, or paid to, third parties
In applying the requirements of■COBS 2.3A.10Rto■COBS 2.3A.12R, a firm must consider the costs and fees rules in:. Any firm involved in a distribution channel that provides an investment service, an ancillary service or distributes an insurance-based investment product must fulfill its obligations to provide information to its clients.
Inducements relating to the provision of independent advice, restricted advice and portfolio management services to retail
Promotion in relation to the provision of independent advice, limited advice and retail portfolio management services. a) business of the consulting firm; or. b) any other related service, where 'related service' has the same meaning as in ■COBS 6.1A.6R. a) small eligible non-monetary benefits (see ■COBS 2.3A.19Relating to the provision of investment services and. Incentives in relation to the provision of independent advisory and portfolio management services to overseas retail clients.
Inducements relating to the provision of independent advice and portfolio management services to retail clients outside the
Fees, commissions and non-monetary benefits paid or provided by a person on behalf of the client.
Fees, commission, and non-monetary benefits paid or provided by a person on behalf of the client
Acceptable minor non-monetary benefits
For companies newly admitted to trading, the determination of the threshold should be based on the market capitalization at the close of the first day. These conditions are also likely to be relevant to firms considering whether a non-monetary benefit is capable of enhancing the quality of service to a customer for the purposes of the rule on allowable minor non-monetary benefits (see■COBS 2.3A.19R (2 )).
Providing credit and other benefits to firms that advise retail clients on retail investment products
B Inducements and research
This section applies to a firm engaged in MiFID, equivalent third country or optional exemption activities. Compliance with■COBS 2.3B allows such a company to receive third-party research without violating that prohibition.
Receiving third party research without it constituting an inducement
Conditions relating to the operation of the research payment account
2) (a) The company must establish and regularly assess a research budget as an internal administrative measure as part of the establishment of a research payment account and agreement on the research cost with its customers; and. Information about increases in the research budget under■COBS 2.3B.8R(2) should be provided to relevant clients well in advance of such increases taking effect.
Governance and oversight of research payment accounts
Where a company charges a customer under COBS 2.3B.4R(1), that charge must be for an amount owed by the company. Provided that they are not collected by the firm until the fee is due, this money will therefore not be client money held by the firm for the client who owed the fee (see■CASS 7.11.25R).
Other operational arrangements for research payment accounts
For the purposes of ■COBS 2.3B.3Rin■COBS 2.3B.4R, a company may outsource the management of a research payment account to a third party. In order for the firm to maintain sufficient control over and accountability for the research payment account when it relies on a third party to manage it, the firm should consider whether its arrangements with that third party will ensure that: a) the firm can without undue delay (in any case no later than 30 days after deduction from the customer's account) collects the costs of the customer's research activity in relation to a specific research budget to a separate research payment account for that budget, as approved funds. );.
Disclosure on request of payments made from a research payment account
Research for the purposes of research payment accounts
C Research and execution services
Requirement on a firm that executes orders and provides research to price and supply services separately
Agent as client and reliance on others
Agent as client
Reliance on other investment firms: MiFID and equivalent business
Reliance on other insurance distributors
Reliance on others: other situations
Optional additional products
Restriction on marketing or providing an optional product for which a fee is payable
Client categorisation
- Application
Scope
Mixed business
Clients
General definition
Who is the client?
General notifications
A firm must therefore inform a client who is categorized as a professional client or an eligible counterparty of its right to request a different categorization whether or not the firm will agree to such requests. However, a firm need only inform a client of a right to request a different categorization involving a lower level of protection if it is willing to consider such requests.
Retail clients
Professional clients
Per se professional clients
A firm must categorize a local public authority or municipality which (in either case) does not manage public debt as a retail client, unless it is permitted to treat such a person as an elected professional client in accordance with■COBS 3.5.3BRto ■COBS 3.5.3ER. As a result of ■COBS 3.5.2BR, a local public authority or municipality which (in either case) does not manage public debt should not be treated as a professional client in itself.
Elective professional clients
Eligible counterparties
Per se eligible counterparties
Elective eligible counterparties
Client and firm located in different jurisdictions
Providing clients with a higher level of protection
A firm must allow a professional client or eligible counterparty to request recategorization as a client benefiting from a higher tier. 71(2) Where, in accordance with [■COBS 3.7.1R], an eligible counterparty requests to be treated as a party whose dealings with an investment firm are subject to the conduct of business rules; Marketing conduct;.
Policies, procedures and records
Policies and procedures
Records
Communicating with clients,
- Application
Who? What?
This has a similar effect to the exemption in section 70(1)(c) of the Financial Promotion Order, which is mentioned in the definition of an exempt communication. 3) In this chapter "financial promotion" and "financial promotion of direct offer" include communications that are marketing. Approving a financial promotion without communicating it (which includes causing it to be communicated) is not a MiFID, third country equivalent or optional business exemption.
What? Modification relating to the KII Regulation
A reference in this chapter to MiFID, equivalent third country or optional exempt business includes a reference to communications that take place before an agreement to perform services in relation to MiFID, equivalent third country or optional exempt business.
Where? General position
Fair, clear and not misleading communications
The fair, clear and not misleading rule
Fair, clear and not misleading financial promotions
The reasonable steps defence to an action for damages
Financial promotions to be identifiable as such
Compensation information
Communicating with retail clients (non-MiFID provisions)
General rule
■COBS 4.5.2AR) must be sufficiently emphasized so that a small customer can easily identify the company responsible for the compliance of the financial promotion with the applicable rules. When deciding whether and how to communicate information to a specific target group, a company must consider the nature of the product or business, the risks involved, the customer's commitment, the likelihood.
Comparative information
When considering whether to include or omit a fact in a communication, an enterprise should consider the guidance in ■COBS 4.2.2G to provide information that is appropriate and proportionate.
Referring to tax
Consistent financial promotions
Innovative finance ISA
This warning must be in addition to any more general warning that a product or service puts a customer's capital at risk (■COBS 4.2.4G(1)). Operators of electronic lending systems and firms advising on P2P deals should also take note of the guidance in
Lifetime ISA
Authorised fund managers’ communications in relation to benchmarks
As a result of■COBS 4.5.11AR,■COBS 4.5.12Rto■COBS 4.5.15 It is not normally expected to apply to administrative communications unless those communications refer in any way to the purposes of an authorized fund or describe the benefits or risks of investing in to. communications may include contract notes that simply set out the details of a unitholder's purchase or redemption of units, statements of income distributions or accruals, and confirmations of a change to a unitholder's registration details. Subject to■COBS 4.5.13R, an authorized fund manager must include in any communication about an authorized fund to which this rule applies:.
Funds investing in inherently illiquid assets (FIIAs)
A Communicating with clients
General requirements
When communicating information, a firm must consider whether the omission of any material fact would result in the information being insufficient, unclear, unfair or misleading. When the information compares investments or ancillary services, financial instruments or persons providing investments or ancillary services, investment firms must ensure that the following conditions are met:. a) the comparison is meaningful and presented in a fair and balanced way;.
Past performance
44(7) When the information refers to a specific tax treatment, it must be clearly stated that the tax treatment depends on the individual circumstances of the individual customer and may change in the future. 46(5) Investment firms shall ensure that the information in the marketing message is consistent with all information provided by the firm to clients during the performance of investment and ancillary services.
Simulated past performance
Future performance
A company should not provide information about future performance if it cannot obtain the objective data necessary to meet the requirements.
Information that uses the name of any competent authority
Past, simulated past and future performance (non-MiFID provisions)
A company must ensure that information containing an indication of past performance of a relevant company, a relevant investment or a financial index meets the following conditions:. A firm must ensure that information containing an indication of simulated past performance of a relevant business, a relevant investment or a financial index meets the following conditions:.
Direct offer financial promotions
Direct offer financial promotions relating to MiFID, equivalent third country or optional exemption business
Effect of provisions marked “UK” for third country investment firms and MiFID optional exemptions firms
Other direct offer financial promotions
Direct offer financial promotions related to MiFID, equivalent third country or optional exemption matters. document or documents containing, alone or in combination, that information. 1) ■COBS 4.7.1R(2)allows a company to communicate a direct financial promotion offer that does not contain all of the information required by.
Warrants and derivatives
Cold calls and other promotions that are not in writing
This section applies to a company in connection with the communication of a financial promotion that is not in writing, but it does not apply:.
Restriction on cold calling
Promotions that are not in writing
Financial promotions with an overseas element
This section does not apply to a firm in relation to its MiFID or equivalent third country business. Approving a financial promotion for communications by an unauthorized person is not MiFID or equivalent third country business.
Financial promotions for the business of an overseas person
Financial promotions for an overseas long-term insurer
Approving and confirming
Systems and controls
Approving financial promotions
This will ensure that an unauthorized person who then also communicates the financial promotion to another person will not breach the restriction on financial promotion in the Act (section 21). If an approval is limited, and an unauthorized person communicates the financial promotion to persons not covered by the approval, the.
Communicating financial promotions
If a firm approves a financial promotion in circumstances in which one or more of the financial promotion rules, or the prohibition on the approval of promotions for collective investment schemes in section 240(1) of the Act (Restriction of approval), do not expressly apply , approval must be given with conditions that are limited to those circumstances. For example, if a firm approves a financial promotion for communication with a professional client or other appropriate party, the approval should be limited to communication with such persons.
Competence and expertise
A company may not confirm compliance with a financial promotion for the purposes of COBS 4.10.9AR(3)(a) unless: . a) he is convinced that the financial promotion complies with the rules for financial promotion; And. A company should not confirm compliance with a financial promotion during a personal visit, telephone call or other interactive dialogue.
Relying on another firm's confirmation of compliance
Conflicts of interest
Record keeping: financial promotion
General
A firm should consider keeping a record of why it is satisfied that the financial promotion complies with the financial promotion rules. If the financial promotion includes market information that is continuously updated in accordance with the relevant market, the record keeping rules do not require a firm to record that information.
Promotions of restricted mass market investments and non- mass market investments
This rule applies to a firm that communicates or may communicate a direct offer financial promotion in relation to a limited mass market investment to which ■COBS 4.12A.15 Applies. A firm that approves a direct offer financial promotion in relation to a limited mass market investment to which■COBS 4.12A.15Applications must take reasonable steps to ensure that:.
44.12[deleted]
A Promotion of restricted mass market investments
Purpose
The requirements in this section relating to the provision of risk warnings are in addition to, and without prejudice to, firms' other obligations relating to the provision of information.
Restrictions on monetary and non-monetary incentives
Risk warning
A company must omit the words "and you are unlikely to be protected if something goes wrong" from the risk warning required under (1) if the conditions under (b) apply. i) the financial promotion involves an investment:. In that case, the financial promotion must still contain the relevant risk warning stated in.
Direct offer financial promotions
In such a case, the financial promotion must still include the relevant risk warning specified in may include, without limitation, mandatory disclosures applicable to that firm, such as those set out in ■COBS 18.12.24Rto■COBS 18.12.28R, including information about:. a) the identity of the borrower(s); A firm may communicate or approve a financial promotion of a direct offer in connection with a mass limited investment in the market, or for communication with a retail client if:
First condition: cooling off period
Second condition: personalised risk warning
Third condition: categorisation
Where the direct offering financing will relate to more than one type of limited mass market investment, the condition in ■COBS 4.12A.21R may be satisfied by the retail customer signing a combined statement meeting the requirements of ■COBS 4 Annex 2Rto■COBS 4 Annex 5R, as applicable as applicable, for each type of limited mass market investment to which the direct offering financing will relate. Where the Limited Investor Statement (■COBS 4 Appendix 5R) refers to a. limited investor who invests no more than 10% of their net assets, this refers to the retail client's total investment across all types of limited mass market investments.
Fourth condition: appropriateness
This rule applies when a limited investment in the mass market has been deemed unsuitable for a particular retail investor. based on two consecutive evaluations. When gathering information regarding the knowledge and experience of a small client for the purpose of evaluating whether a limited mass market investment is suitable for that small client, business or person.
Requirements of risk warnings and non-digital risk summaries
Requirements of digital personalised risk warnings and digital risk summaries
Risk summaries
B Promotion of non-mass market investments
In addition to the persons listed in ■COBS 4.12B.1R, persons (including unauthorized persons) who are eligible for a temporary exemption or exclusion from the general prohibition under:.
Purpose and overview of the rules
Promotion of non-mass market investments
Exemptions from the restrictions on the promotion of non- mass market investments
Securities offered by the existing or non-mainstream pool investment deviating as part of a rights issue. Enter- A person who Any non-mainstream pooled invest- price and qualifies to ment which is such an arrangement.
Advice and preliminary assessment of suitability
This also applies if the company will carry out MiFID activity at the same time as or after the promotion.). A company may communicate an invitation or inducement to participate in an unregulated collective investment scheme without breaching the promotion restriction in section 238 of the Act if the promotion falls within an exception in the table in ■COBS 4.12B.7R(5) and complies with.
Promotions to certified high net worth investors, certified sophisticated investors or self-certified sophisticated investors
Promotions to Certified High Net Worth Investors, Certified Advanced Investors, or Self-Certified Advanced Investors. a) the office has a valid reason for any change;. Preconditions for communication to certified high net worth investors, certified experienced investors or self-certified.
Prior conditions for communication to certified high net worth investors, certified sophisticated investors or self-certified
Conditions precedent to communications to Certified High Capital Investors, Certified Sophisticated Investors or Self-Certified. i) leave the investment trip; or. ii) continue to receive the financial promotion. This rule does not apply to a financial promotion of a closed investment association that applies for or with a premium listing and that complies with the requirements of ■LR 15. 1) The second condition applies if a retail customer requests to see a financial promotion of a non -mass market investment (including a security in a closed-end investment fund applying for or with a premium listing and which complies with the requirements of ■LR 15).
Risk warning to be included in the financial promotion
Even where it is not possible to provide a risk warning on a durable medium (for example, because the financial promotion is a real-time financial promotion), the recipient of the financial promotion must still be provided with an appropriate summary of the risk on a durable medium. at or about the time the financial promotion is notified (■COBS 4.12B.21R(4)). Requirements for risk alerts and non-digital risk summaries. a) be visible taking into account the content, size and direction of the financial promotion as a whole;
Further requirement to include a statement of costs, charges and commission where the financial promotion relates to
For the purposes of ■COBS 4.12B.30R, design features that may reduce the visibility or significance of a personalized hazard warning or summary include, but are not limited to:. The statement providing the breakdown of expenses in ■COBS 4.12B.33R(3) must be included in the financial promotion in a clear and conspicuous manner.
Definition of sophisticated and high net worth investors
The purpose of the statements required by ■COBS 4.12B.33 is to enable an investor to consider the proportion of capital raised by an issue of a. illiquid speculative securities that will not be invested. Where the financial promotion will relate to more than one type of non-mass market investment, the retail customer may sign a combined statement meeting the requirements in ■COBS 4 Annex 2Rto■COBS 4 Annex 4R, as appropriate, in respect of each type of non-mass market investments to which the financial promotion will be linked.
Sophisticated and high net worth investors: guidance on certification by authorised person and reliance on self-
In particular, the firm should consider whether promoting the non-mass market investment is in the client's best interest and whether it is fair to make the promotion to that client on a self-certification basis. A retail client who meets the criteria for a self-certified sophisticated investor but not a certified sophisticated investor may not be able to properly understand and appreciate the risks of a non-mass market investment.
One-off promotions
In exceptional circumstances, however, the retail client may have acquired the necessary knowledge in ways other than their own investment experience, for example if the retail client is a professional with several years of experience with the design, operation or marketing of complex investments such as e.g. as options, futures, contracts for differences or non-mass market investments.
Qualified investor schemes
Firms should note that, according to the FCA, promoting units in a Qualifying Investor Scheme to a retail client who is not a Certified Senior Investor or a self-certified Senior Investor is unlikely to be appropriate or in that investor's best interest. client is.
Long-term asset funds
Electronic documents
Definition of speculative illiquid security
For the purposes of COBS 4.12B.50R, and notwithstanding the readily realizable securities exemption in COBS 4.12B.54R(3)(d), a bond is also a speculative illiquid security if:. A debenture or preferred stock is not a speculative illiquid security to which one or more of the exemptions in (1), (3) or (4) below apply. a) the issuer or a member of the issuer's group uses the proceeds of the issue for the purposes of the activities in ■COBS 4.12B.50R(2)(c) (purchasing or acquiring investments other than those specified ), (d) (purchasing real estate or an interest in real estate) or (e) (paying for or financing the construction of real estate); And.
Guidance on general commercial or industrial purpose
UCITS
Marketing communications relating to UCITS schemes
This section applies to a firm in relation to a communication with a client, including an exempt communication that is a marketing communication within the meaning of the UCITS Directive.
Marketing communications relating to a feeder UCITS
4.14 [deleted]
4Risk summaries
Even if the business you invest in is successful, it will likely take several years to make your money back. Even if the business you invest in is successful, it may take several years to get your money back.
4Certified high net worth investor statement
4Certified sophisticated investor statement
4Self-certified sophisticated investor statement
4Restricted investor statement
Distance communications
- The distance marketing disclosure rules
This section applies to a business carrying out any distance marketing activity from a UK business, with or to a UK consumer.
The distance marketing disclosure rules
Exception: contracts for payment services
Terms and conditions, and form
Exception: distance contract as a stage in the provision of another service
Exception: successive operations
In the FCA's view, other examples of: a) subscription to a savings scheme in an investment trust; or. b) taking out a life policy, personal pension scheme or stakeholder pension scheme which includes a default option providing for future increases or decreases in premiums or regular payments; a) successive purchases or sales of shares under an investment savings scheme; and.
Exception: voice telephony communications
