COBS 4.8 Cold calls and other promotions that are not in writing

This section applies to a firm in relation to a financial promotion that is not in writing, but it does not apply:

1. (1)

   to the extent that the financial promotion is an excluded communication;

2. (2)

   if the financial promotion is image advertising;

3. (3)

   if the financial promotion is a non-retail communication;1

4. (4)

   to the extent that the financial promotion relates to a deposit;1

5. (5)

   to the extent that the financial promotion relates to a pure protection contract that is a long-term care insurance contract.1

A firm must not make a cold call unless:

1. (1)

   the recipient has an established existing client relationship with the firm and the relationship is such that the recipient envisages receiving cold calls; or

2. (2)

   the cold call relates to a generally marketable packaged product which is not:

   1. (a)

      a higher volatility fund; or

   2. (b)

      a life policy with a link (including a potential link) to a higher volatility fund; or

3. (3)

   the cold call relates to a controlled activity to be carried on by an authorised person or exempt person and the only controlled investments involved or which reasonably could be involved are:

   1. (a)

      readily realisable securities (other than warrants); and

   2. (b)

      generally marketable non-geared packaged products.

A firm must notinitiate a non-written financial promotion communicated to a particular person outside the firm's premises, unless the person communicating it:

1. (1)

   only does so at an appropriate time of the day;

2. (2)

   identifies himself and the firm he represents at the outset and makes clear the purpose of the communication;

3. (3)

   clarifies if the client would like to continue with or terminate the communication, and terminates the communication at any time that the client requests it; and

4. (4)

   gives a contact point to any client with whom he arranges an appointment.