Financial promotions can be real time or non-real time. A real time financial promotion is communicated in the course of a personal visit, telephone conversation or interactive dialogue. A non-real time financial promotion is not a real time financial promotion. It includes a financial promotion made by letter, e-mail or contained in a newspaper, journal, magazine, other periodical publication, website, television or radio programme or teletext service.
COBS 4.6 (Past, simulated past and future performance), COBS 4.7.1 R (Direct offer financial promotions), COBS 4.10 (Systems and controls and approving and communicating financial promotions), COBS 13 (Preparing product information) and COBS 14 (Providing product information to clients) apply to a firm with respect to the activity of accepting deposits as set out in those provisions, COBS 4.1 and BCOBS.
In addition to the limited application ofthe financial promotion rules2, a number of exemptions within the defined term excluded communication are relevant. In particular, paragraphs (a) and (e) of the definition provide further limitations on the application of the financial promotion rules in relation to credit unions2:22
Exemption (a2): A financial promotion that would benefit from an exemption in the Financial Promotion Order if it were communicated by an unauthorised person, or which originates outside the United Kingdom and is not capable of having an effect in the United Kingdom.222
Exemption (e2): A "one off" financial promotion that is not a cold call2. If the conditions set out in (a) to (c) are satisfied, a financial promotion is to be regarded as "one off"; if not, the fact that any one or more of these conditions is met is to be taken into account in determining if a financial promotion is "one off", but a financial promotion may be regarded as "one off" even if none of the conditions are met; the conditions are that:22
the identity of the product or service to which the financial promotion relates has been determined having regard to the particular circumstances of the recipient;
the financial promotion is not part of an organised marketing campaign.
In addition to the rules and guidance contained in BCOBS3 and the exemptions mentioned in CRED 11.2.4 G, financial promotions (including those which are exempt) may be subject to more general rules including Principle 7 (Communications with clients) and 2SYSC 3 (Systems and controls) and the fair, clear and not misleading rule2.32322
- (1) 2
includes the name of the firm;
- (b) 3
is sufficient for, and presented in a way that is likely to be understood by, the average member of the group to whom it is directed, or by whom it is likely to be received; and
does not disguise, diminish or obscure important items, statements or warnings.