CONC 3.7 Financial promotions and communications: credit brokers
Application
This section applies to a financial promotion or a communication with a customer in relation to credit broking in relation to a regulated credit agreement.
CONC 3.7.4 G also applies to a financial promotion or a communication with a customer in relation to the activities specified in article 36A(1)(a) or (c) of the Regulated Activities Order in relation to a credit agreement that would be a regulated credit agreement but for the relevant provisions.
Credit brokers’ status
A firm must, in a financial promotion or a document which is intended for individuals which relates to its credit broking, indicate the extent of its powers and in particular whether it works exclusively with one or more lenders or works independently.
[Note: section 160A(3) of CCA]
[Note: article 21(a) of the Consumer Credit Directive]
A firm should in a financial promotion or in a communication with a customer:
- (1)
make clear, to the extent an average customer of the firm would understand, the nature of the service that the firm provides;
[Note: paragraphs 3.7e and 4.8b of CBG]
- (2)
indicate to the customer in a prominent way the existence of any financial arrangements with a lender that might impact upon the firm's impartiality in promoting a credit product to a customer;
[Note: paragraphs 2.2, 6th bullet and 4.6 of CBG]
- (3)
only describe itself as independent if it is able to provide access to a representative range of credit products from the relevant product market on competitive terms and is not constrained in providing such access, for example, because of one or more agreements with lenders; and
[Note: paragraph 4.5 of CBG]
- (4)
ensure that any disclosure about the extent of its independence is prominent and in accordance with the clear, fair not misleading rule in CONC 3.3.1 R, clear and easily comprehensible.
[Note: paragraph 4.6 of CBG]