FPCOB 4.2 Communications and financial promotions: the obligations

1A firm must ensure that a communication or a financial promotion is fair, clear and not misleading.

1A firm must ensure that a communication or financial promotion:

1. (1)

   includes the name of the firm;

2. (2)

   is accurate;

3. (3)

   is balanced and, in particular, does not emphasise any potential benefits without also giving a fair and prominent indication of any relevant risks;

4. (4)

   is appropriate for, and presented at a level and in a form that is comprehensible to the average funeral plan customer;

5. (5)

   does not disguise, omit, diminish or obscure important items, statements or warnings; and

6. (6)

   where it contains a comparison or contrast, presents the comparison or contrast in a fair and balanced way and ensures that it is meaningful.

1A firm must ensure that a financial promotion in relation to a funeral plan or regulated funeral plan activity is clearly identifiable as such.

1. (1)

   1Before a firm approves a financial promotion, it must take reasonable steps to ensure that the financial promotion complies with the financial promotion rules.

2. (2)

   If, subsequently, a firm becomes aware that a financial promotion no longer complies with the financial promotion rules, it must withdraw its approval and notify any person that it knows to be relying on its approval as soon as reasonably practicable.

1A firm must not approve a financial promotion to be made in the course of a personal visit, telephone conversation or other interactive dialogue.

1If, in relation to a particular communication or financial promotion, a firm takes reasonable steps to ensure it complies with the fair, clear and not misleading rule, a contravention of that rule does not give rise to a right of action under section 138D of the Act.

1A firm must not make a cold call unless the recipient has an established existing client relationship with the firm and the relationship is such that the recipient envisages receiving cold calls.

1A firm must not communicate a solicited or unsolicited financial promotion that is not in writing, to a client outside the firm’s premises, unless the person communicating it:

1. (1)

   only does so at an appropriate time of the day;

2. (2)

   identifies themself and the firm they represent at the outset and makes clear the purpose of the communication;

3. (3)

   clarifies if the client would like to continue with or terminate the communication, and terminates the communication at any time that the client requests it; and

4. (4)

   gives a contact point to any client with whom they arrange an appointment.

1. (1)

   1A firm must make an adequate record of any financial promotion it communicates or approves, other than a financial promotion made in the course of a personal visit, telephone conversation or other interactive dialogue.

2. (2)

   For a telemarketing campaign, a firm must make an adequate record of copies of any scripts used.

3. (3)

   A firm must retain the record in relation to the financial promotion for six years.