ECO 2.1 Application and purpose

The main purpose of this chapter is to implement the provisions of the E-Commerce Directive as these apply to firms regulated by the FSA.

The purpose of ECO 2.2 (Modification of the content and territorial scope of COB) is to ensure that:

1. (a)

   an outgoing ECA provider; and1

2. (b)

   a firm, in relation to a financial promotion which is an outgoing electronic commerce communication1;

in complying with COB, is able to disregard any provision of COB which is included in the 'consumer contract derogation' or 'insurance derogation' (set out in the Annex to the E-Commerce Directive), when dealing with a consumer in another EEA State.

ECO 2.2 also extends the territorial scope of COB 3 (Financial promotion), ICOB 3 (Financial promotion)3 and MCOB 3 (Financial promotion) in relation to a financial promotion which is an outgoing electronic commerce communication1, whether or not the recipient is a consumer.2

ECO 2.3 (Minimum information requirements) imposes the information requirements of the E-Commerce Directive on firms when they carry on an electronic commerce activity with an EEA ECA recipient from a UK establishment, whether or not the recipient is a consumer. These requirements are in addition to the requirements otherwise applicable to firms when they carry on a regulated activity.1