BCOBS 2.1 Purpose and Application: Who and what?
1Principle 6 requires a firm to pay due regard to the interests of its customers and treat them fairly. Principle 7 requires a firm to pay due regard to the information needs of its clients and communicate information to them in a way which is clear, fair and not misleading. Principles 6 and 7 also apply to an electronic money institution, a payment institution and a registered account information service provider4 with respect to provision of payment services and the issuance of electronic money.3 This chapter reinforces these requirements by requiring a firm and these other providers3 to pay regard to the information needs of banking customers, payment service customers and electronic money customers3 when communicating with, or making a financial promotion or a payment service or electronic money promotion3 to, them and to communicate information in a way that is clear, fair and not misleading.
In addition to the general application rule (BCOBS 1.1.1 R), this chapter applies to the communication, or approval for communication, to a person in the United Kingdom of a financial promotion of a retail banking service unless it can lawfully be communicated by an unauthorised person without approval.
This chapter applies to a firm:
- (1)
communicating with a banking customer in relation to accepting deposits;
- (2)
communicating a financial promotion that is not an excluded communication; or
- (3)
3This chapter applies to a provider:
- (1)
communicating with a payment service customer or an electronic money customer in relation to the provision of a payment service or the issuing of electronic money and activities connected with those activities; or
- (2)
communicating a payment service or electronic money promotion.
2In accordance with BCOBS 1 Annex 1 paragraph 1.1R, BCOBS 2 does not apply to a MiFID investment firm, a third country investment firm or a MiFID optional exemption firm in relation to the sale of structured deposits. A MiFID investment firm, a third country investment firm or a MiFID optional exemption firm is subject to the rules specified in COBS 1.1.1AR(2) in relation to the sale of structured deposits.