Which of the following rules is applicable only to eligible counterparties?

Conflict of interest rules are specifically tailored for certain client categories, including eligible counterparties, which include professional clients and institutional investors. This distinction is crucial because eligible counterparties have a higher level of sophistication and awareness about risks and conflicts compared to retail clients.

The purpose of these rules is to ensure that firms manage conflicts in a way that is appropriate for the type of client involved. For eligible counterparties, there's an assumption that they can assess the risks and implications of any conflicts of interest that may arise. Therefore, the obligations placed on firms regarding conflict of interest management are different for this category.

Consequently, the nuances of how conflicts are identified, managed, and disclosed differ based on the type of client, making the rules applicable solely to eligible counterparties. In contrast, financial promotions, investment research, and personal account dealing generally have broader applicability across various client categories and are subject to different regulatory requirements, reflecting the diverse nature of the clients and their respective levels of protection needed under UK regulations.