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  2. Point in time
    2016-07-16

BCOBS 2.3 Other general requirements for communications and financial promotions

BCOBS 2.3.1R

A firm must ensure that each communication made to a banking customer and each financial promotion communicated or approved by the firm:

  1. (1)

    includes the name of the firm;

  2. (2)

    is accurate and, in particular, does not emphasise any potential benefits of a retail banking service without also giving a fair and prominent indication of any relevant risks;

  3. (3)

    is sufficient for, and presented in a way that is likely to be understood by, the average member of the group to whom it is directed, or by whom it is likely to be received; and

  4. (4)

    does not disguise, diminish or obscure important information, statements or warnings.

BCOBS 2.3.2G

The name of the firm may be a trading name or shortened version of the legal name of the firm, provided the banking customer can identify the firm communicating the information.

BCOBS 2.3.3G

In deciding whether, and how, to communicate information to a particular target audience, a firm should take into account the nature of the retail banking service, the banking customer's likely or actual commitment, the likely information needs of a reasonable recipient, and the role of the communication or financial promotion in the sales process.

BCOBS 2.3.4G

If a communication or a financial promotion names the FCA, PRA or both as the regulator of a firm and refers to matters not regulated by the FCA, PRA or both, the firm should ensure that the communication or financial promotion makes clear that those matters are not regulated by the FCA, PRA or both.

BCOBS 2.3.5G

When communicating information, a firm should consider whether omission of any relevant fact will result in information given to the banking customer being insufficient, unclear, unfair or misleading.

BCOBS 2.3.6G

The Credit Institutions (Protection of Deposits) Regulations 1995 may apply in relation to communications with a banking customer.

BCOBS 2.3.7R

If a communication or a financial promotion compares a retail banking service with one or more other retail banking service (whether or not provided by the firm), the firm must ensure that the comparison is meaningful and presented in a fair and balanced way.

BCOBS 2.3.8R

If a communication or a financial promotion in relation to a retail banking service refers to a particular tax treatment or rate of interest payable, a firm must ensure that a prominent statement that the tax treatment or the rate of interest payable:

  1. (1)

    depends on the individual circumstances of each banking customer; and

  2. (2)

    may be subject to change in the future;

is either included in that communication or financial promotion, or provided to the banking customer on paper or in another durable medium in good time before the banking customer is bound by the contract for that retail banking service.

BCOBS 2.3.9G

When designing a financial promotion, a firm may find it helpful to take account of the British Bankers' Association/Building Societies Association Code of Conduct for the Advertising of Interest Bearing Accounts.