What is required for the fair execution of client orders under COBS 11?

The requirement for the fair execution of client orders under COBS 11 emphasizes the necessity for prompt and fair execution of client orders. This means that firms are expected to execute client orders in a manner that ensures that clients are treated equitably and that their orders are handled without undue delay or disadvantage compared to other clients. This principle is foundational to protect client interests and maintain market integrity.

In the context of regulatory frameworks, fair execution encompasses various elements including the speed of execution, the price at which orders are executed, and the mechanisms used to ensure that all clients receive equal treatment. A firm must implement systems and procedures that facilitate this fair execution to meet regulatory expectations.

Other options mention concepts that, while related to client interactions or operational procedures, do not specifically encapsulate the essence of fair execution as outlined in COBS 11. For instance, prior consent for market execution suggests a different aspect of client communication rather than the execution process itself. Approval for client withdrawals focuses on access to funds rather than the execution of trades. Finally, the allocation of orders after market closing is not relevant to the principle of fair execution, which is primarily concerned with real-time order handling and fairness during the execution process.