COB 3.3 Application: where?

This chapter applies to a firm only in relation to:

1. (1)

   the communication of a financial promotion to a person inside the United Kingdom;

2. (2)

   the communication of an unsolicited real time financial promotion to a person outside the United Kingdom, unless:

   1. (a)

      it is made from a place outside the United Kingdom; and

   2. (b)

      it is made for the purposes of a business which is carried on outside the United Kingdom and which is not carried on in the United Kingdom; and

3. (3)

   the approval of a non-real time financial promotion for communication to a person inside the United Kingdom;

subject to COB 3.3.3 R (Exceptions to territorial scope: rules without territorial limitation) and COB 3.3.4A R (Exceptions to territorial scope: distance contracts).5

The following parts of this chapter apply without any territorial limitation, subject to COB 3.3.4A R:5

1. (1)

   COB 3.11 (Unregulated collective investment schemes);

2. (2)

   if a firm approves a financial promotion:

   1. (a)

      COB 3.1 to COB 3.5 (Application, General and Purpose);

   2. (b)

      COB 3.8.4 R (1) (Non-real time financial promotions: clear, fair and not misleading);

   3. (c)

      COB 3.12.1 G to COB 3.12.5 G (Approval of financial promotions; No approval of real time financial promotions; Approval of financial promotions when not all the rules apply).

1. (1)

   5Notwithstanding COB 3.3.1 R and COB 3.3.3 R, this chapter, other than the rules in (3), does not apply to a firm when it communicates a financial promotion, if the conditions in (2) are satisfied:

2. (2)

   The conditions are that:

   1. (a)

      the firm communicates the financial promotion from an establishment maintained by the firm in an EEA State other than the United Kingdom, and not from an establishment maintained by the firm in the United Kingdom or outside the EEA;

   2. (b)

      either that EEA State:

      1. (i)

         has implemented the DMD; or

      2. (ii)

         has obligations in its domestic law corresponding to those provided for by the DMD;

   3. (c)

      the financial promotion relates, exclusively, to a distance contract, for the conclusion of which the obligations provided for by the DMD (or corresponding obligations) are applied by that State; and

   4. (d)

      the firm is a national of an EEA State or a company or firm mentioned in article 48 of the Treaty.

3. (3)

   The rules which continue to apply, notwithstanding this rule, are:

   1. (a)

      COB 3.8.4 R (Non-real time financial promotions: clear, fair and not misleading; comparisons; restriction of information on compensation);

   2. (b)

      COB 3.8.22 R (1) and (2) (Real time financial promotions);

   3. (c)

      COB 3.9.5 R (Prohibited types of direct offer financial promotion);

   4. (d)

      COB 3.10 (Unsolicited real time financial promotions);

   5. (e)

      COB 3.11 (Unregulated collective investment schemes and qualified investor schemes); and

   6. (f)

      COB 3.13.1 R (Additional requirements for financial promotions for an overseas long-term insurer).

For the purposes of this chapter:

1. (1)

   a financial promotion is communicated to a person outside the United Kingdom if it is:

   1. (a)

      made to a person who receives it outside the United Kingdom; or

   2. (b)

      directed only at persons outside the United Kingdom; and

2. (2)

   a financial promotion is communicated to a person inside the United Kingdom if it is communicated to a person other than as described in (1);

and see COB 3.5.6 R and COB 3.3.6 R which amplify this rule.

1. (1)

   If the conditions set out in 4(a), (b), (c) and (d) are met, a financial promotion directed from a place inside the United Kingdom will be regarded as directed only at persons outside the United Kingdom.

2. (2)

   If the conditions set out in 4(c) and (d) are met a financial promotion directed from a place outside the United Kingdom will be regarded as directed only at persons outside the United Kingdom.

3. (3)

   In any other case where one or more of the conditions in 4(a) to (e) is met, that fact will be taken into account in determining whether a financial promotion is directed only at persons outside the United Kingdom (but a financial promotion may still be regarded as directed only at persons outside the United Kingdom even if none of these conditions is met).

4. (4)

   The conditions are that:

   1. (a)

      the financial promotion is accompanied by an indication that it is directed only at persons outside the United Kingdom;

   2. (b)

      the financial promotion is accompanied by an indication that it must not be acted upon by persons in the United Kingdom;

   3. (c)

      the financial promotion is not referred to in, or directly accessible from, any other financial promotion which is made to a person or directed at persons in the United Kingdom by or on behalf ofthe same person;

   4. (d)

      there are in place proper systems and procedures to prevent recipients in the United Kingdom (other than those to whom the financial promotion might otherwise lawfully have been made) engaging in the investment activity to which the financial promotion relates with the person directing the financial promotion, a close relative of his or a member of the same group;

   5. (e)

      the financial promotion is included in:

      1. (i)

         a website, newspaper, journal, magazine or periodical publication which is principally accessed in or intended for a market outside the United Kingdom;

      2. (ii)

         a radio or television broadcast or teletext service transmitted principally for reception outside the United Kingdom.