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  3. Point in time
    2016-07-17

CONC 3.1 Application

1

[Note: Until 31 March 2015, transitional provisions apply to CONC 3: see CONC TP 6.1]

Who? What?

CONC 3.1.1R

This chapter, unless a rule in CONC 3 specifies differently, applies to a firm.

CONC 3.1.2GRP

Under section 39(3) of the Act, a firm is responsible for financial promotions communicated by its appointed representatives when acting as such.

CONC 3.1.3RRP

This chapter, unless a rule in CONC 3 specifies differently, applies to:

  1. (1)

    a communication with a customer in relation to a credit agreement;

  2. (2)

    the communication or approval for communication of a financial promotion in relation to a credit agreement;

  3. (3)

    a communication with a customer in relation to credit broking;

  4. (4)

    the communication or approval for communication of a financial promotion in relation to credit broking;

  5. (5)

    a communication with a borrower or a prospective borrower in relation to operating an electronic system in relation to lending; and

  6. (6)

    the communication or approval for communication of a financial promotion to a borrower or a prospective borrower in relation to operating an electronic system in relation to lending.

CONC 3.1.4RRP

The clear fair and not misleading rule in CONC 3.3.1 R and the general requirements rule in CONC 3.3.2 R and the guidance inCONC 3.3.5 G to CONC 3.3.11 G also, unless a rule or guidance in those paragraphs specifies differently, apply to:

  1. (1)

    a communication with a customer in relation to debt counselling or debt adjusting; and

  2. (2)

    the communication or approval for communication of a financial promotion in relation to debt counselling or debt adjusting.

CONC 3.1.4AGRP

3Firms are reminded that the rules and guidance in CONC 3.9 also apply to financial promotions and communications with a customer in relation to debt counselling and debt adjusting.

CONC 3.1.5RRP

CONC 3.3.1 R also applies to:

  1. (1)

    a communication with a customer in relation to a consumer hire agreement;

  2. (2)

    the communication or approval for communication of a financial promotion in relation to a consumer hire agreement; and

  3. (3)

    a communication with a customer in relation to providing credit information services.

CONC 3.1.6RRP

CONC 3 does not apply to:

  1. (1)

    a financial promotion or a communication which expressly or by implication indicates clearly that it is solely promoting credit agreements or consumer hire agreements or P2P agreements for the purposes in each case of a customer's business;

  2. (2)

    a financial promotion or a communication to the extent that it relates to qualifying credit; or

  3. (3)

    an excluded communication.

CONC 3.1.7RRP
  1. (1)

    CONC 3 does not apply (apart from the provisions in (2)) to a financial promotion or communication that consists of only one or more of the following:

    1. (a)

      the name or a trading name 3of the firm (or its appointed representative);

    2. (b)

      a logo;

    3. (c)

      a contact point (address (including e-mail address), telephone, facsimile number and website address);

    4. (d)

      a brief, factual description of the type of product or service provided by the firm.

  2. (2)

    The provisions in CONC 3 which apply to a financial promotion or communication which falls within (1) are:

    1. (a)

      CONC 3.1, CONC 3.5.1 R and CONC 3.6.1 R (application);

    2. (b)

      CONC 3.3.1 R (clear, fair and not misleading);

    3. (c)

      CONC 3.3.3 R (credit regardless of status);

    4. (d)

      CONC 3.5.3 R, CONC 3.5.5 R, CONC 3.6.6 R (requirement for representative example or typical APR etc);

    5. (e)

      CONC 3.5.7 R (other financial promotions requiring a representative APR);

    6. (f)

      CONC 3.5.12 R (restricted expressions) and CONC 3.6.8 R (restricted expressions); and

    7. (g)

      any other rules in CONC which are necessary or expedient to apply the rules in (a) to (f).

CONC 3.1.8GRP

CONC 3.1.7R (1) does not enable detailed information to be given about credit available from the firm. Firms should note that the image advertising exclusion in CONC 3.1.7R (1) is subject to compliance with the rules specified in (2), including the rules which require the inclusion of a representative APR in specified circumstances. A name or logo may trigger the requirement to include a representative APR. Firms should not include any information not referred to in CONC 3.1.7R (1) and should avoid the use of names, logos or addresses, for example, which attempt to convey additional product or cost-related information.

Where?

CONC 3.1.9RRP

This chapter applies to a firm in relation to:

  1. (1)

    a communication with, or the communication or approval for communication of a financial promotion to, a person in the UK;

  2. (2)

    the communication of an unsolicited real time financial promotion, unless it is made from a place, and for the purposes of a business which is only carried on, outside the UK; and

  3. (3)

    the communication or approval for communication of a financial promotion that is an electronic commerce communication to a person in an EEA State other than the UK;

    2

and for the purposes of the application of this chapter, it is immaterial whether the credit agreement or the consumer hire agreement to which the financial promotion or communication relates is subject to the law of a country outside the UK.