COBS 16 — Reporting to clients

Category: Compliance & AML · Reviewed by Mark Fox, Broker · Renewals · Last reviewed June 2026

The FCA rules requiring firms carrying on designated investment business to send clients confirmations of executed transactions, periodic statements of holdings and performance, and other information specified by the rules.

Definition

COBS 16 (and the MiFID-derived COBS 16A) sets out the post-sale reporting duties to clients in designated investment business. The rules cover confirmations of trades (typically by end of next business day), periodic statements (typically quarterly), portfolio depreciation reports (where 10% drawdown threshold is met for MiFID portfolios), and cost and charges disclosure.

Legal / Regulatory basis

FCA Handbook, COBS 16 and COBS 16A. Made under FSMA sections 137A and 138, implementing UK retained MiFID II Article 25(6) and Commission Delegated Regulation (EU) 2017/565, Articles 59–63.

How it works in practice

Trade confirmations must include the identity of the firm, the client identifier, the trading day and time, the type and venue of execution, the instrument and quantity, the unit price, total consideration, commissions and other costs, plus any settlement details. Periodic statements must show holdings, performance, costs and any change in client classification. The 10% depreciation rule requires same-day notification where a discretionary portfolio drops 10% from the prior period valuation.

Common variations

For pure insurance distribution the equivalent rules are ICOBS 6 (product information) and ICOBS 6A (product value, mid-term and renewal disclosure), and the post-sale duties for claims handling under ICOBS 8.

Example

A discretionary investment manager sends quarterly performance statements to clients under COBS 16A.4. An insurance broker sends post-inception cover documentation and a separate Insurance Product Information Document under ICOBS 6.

See also

• COBS — Conduct of Business Sourcebook
• ICOBS 6 — Product information
• ICOBS 8 — Claims handling

References

FCA Handbook, COBS 16 and COBS 16A. Financial Services and Markets Act 2000, sections 137A and 138. UK retained MiFID II (Directive 2014/65/EU), Article 25(6). Commission Delegated Regulation (EU) 2017/565, Articles 59–63.

Last reviewed

By Matt Bartlett, Director, on 2026-06-11.

This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-11. Apex Insurance Brokers Limited, FCA FRN 724952, Companies House 07014570. Not regulated advice — consult your broker on your specific position.