In which scenarios can exceptions to best execution under COBS 11 occur?

Under the regulatory framework of COBS 11, exceptions to the best execution requirement arise primarily when a firm can demonstrate that adhering strictly to the best execution obligations would either hinder achieving better overall results for clients or lead to material difficulties in executing trades effectively.

In this specific context, "better overall results for clients" suggests that a deviation from the standard execution practices may actually enhance the client's outcome, potentially through alternative trading methods or strategies that are more favorable in specific market conditions. "Material difficulty" refers to significant challenges that a firm might face when trying to comply with best execution standards, such as circumstances that could cause delays or prevent successful execution of trades under normal protocols.

This understanding highlights the balance between regulatory compliance and the practical realities of trading in sometimes volatile or complex markets, illustrating how firms must be adaptable while still striving to act in the best interest of their clients.

The other scenarios listed do not align as closely with the core principles of COBS 11. For instance, client preferences and long trading histories do not inherently justify exceptions to best execution standards. Similarly, communication errors and unexpected market changes, while they can impact execution, do not provide a valid basis for deviating from the robust standards that COBS 11 aims to uphold.