COBS 4.9 Financial promotions with an overseas element

1. (1)

   Subject to (2) and (3), this section applies to financial promotions that relate to the business of an overseas person.

2. (2)

   This section does not apply to a firm in relation to its MiFID or equivalent third country business.

3. (3)

   This section does not apply to a communication by a firm other than in relation to its MiFID or equivalent third country business:

   1. (a)

      to the extent that it is an excluded communication;

   2. (b)

      to the extent that it is a prospectus advertisement to which PR 3.3 applies;

   3. (c)

      if it is image advertising;

   4. (d)

      if it is a non-retail communication;1

   5. (e)

      to the extent that it relates to a deposit;1

      2
   6. (f)

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

A firm must not communicate or approve a financial promotion which relates to a particular relevant investment or relevant business of an overseas person, unless:

1. (1)

   the financial promotion makes clear which firm has approved or communicated it and, where relevant, explains:

   1. (a)

      that the rules made under the Act for the protection of retail clients do not apply;

   2. (b)

      the extent and level to which the compensation scheme will be available, or if the scheme will not be available, a statement to that effect; and

   3. (c)

      if the communicator wishes, the protection or compensation available under another system of regulation; and

2. (2)

   the firm has no reason to doubt that the overseas person will deal with retail clients in the United Kingdom in an honest and reliable way.

A firm may only2communicate or approve a financial promotion to enter into a life policy with a person who is:

1. (1)

   an authorised person; or

2. (2)

   an exempt person who is exempt in relation to effecting or carrying out contracts of insurance of the class to which the financial promotion relates; or

3. (3)

   an overseas long-term insurer that is entitled under the law of its home country or territory to carry on there insurance business of the class to which the financial promotion relates.

A financial promotion for an overseas long-term insurer, which has no establishment in the United Kingdom, must include:

1. (1)

   the full name of the overseas long-term insurer, the country where it is registered, and, if different, the country where its head office is situated;

2. (2)

   a prominent statement that 'holders of policies issued by the company will not be protected by the Financial Services Compensation Scheme if the company becomes unable to meet its liabilities to them'; and

3. (3)

   if any trustee, investment manager or United Kingdom agent of the overseas long-term insurer is named which is not independent of the overseas long-term insurer, a prominent statement of that fact.

A financial promotion for an overseas long-term insurer which is authorised to carry on long-term insurance business in any country or territory listed in paragraph (c) of the Glossary definition of overseas long-term insurer must also include:

1. (1)

   the full name of any trustee of property of any description which is retained by the overseas long-term insurer in respect of the promoted contracts;

2. (2)

   an indication whether the investment of such property (or any part of it) is managed by the overseas long-term insurer or by another person and the full name of any investment manager;

3. (3)

   the registered office of any such trustee and of any investment manager and of his principal office (if different); and

4. (4)

   where any person in the United Kingdom takes, or may take, any steps on behalf of the overseas long-term insurer to enter into a promoted contract, the following details:

   1. (a)

      the full name of the overseas long-term insurer;

   2. (b)

      the registered office, head office or principal place of business of that person in the United Kingdom; and

   3. (c)

      if there is more than one such person, the principal or main person in the United Kingdom.

If a financial promotion relates to a life policy with an overseas long-term insurer but does not name the overseas long-term insurer by giving its full name or its business name:

1. (1)

   it must include the following prominent statement: "This financial promotion relates to an insurance company which does not, and is not authorised to, carry on in any part of the United Kingdom the class of insurance business to which this promotion relates. This means that the management and solvency of the company are not supervised by the Financial Services Authority. Holders of policies issued by the company will not have the right to complain to the Financial Ombudsman Service if they have a complaint against the company and will not be protected by the Financial Services Compensation Scheme if the company should become unable to meet its liabilities to them"; and

2. (2)

   if it also refers to other investments, it must make this clear.