GEN 4.3 Letter disclosure
Disclosure in letters to private customers
A firm must take reasonable care to ensure that every letter (or electronic equivalent) which it or its employees send to a private customer, with a view to or in connection with the firm carrying on a regulated activity, includes the disclosure in GEN 4 Annex 1 R.
For a UK domestic firm, the required disclosure in GEN 4 Annex 1 R is "Authorised and regulated by the Financial Services Authority".
- (1)
GEN 4.3.1 R (Disclosure in letters to private customers) covers letters delivered by hand, sent by post and sent by fax and also electronic mail, but not text messages, account statements, business cards or compliment slips (used as such).
- (2)
GEN 4.3.1 R (Disclosure in letters to private customers) applies in relation to letters sent by any of the firm's employees, which includes its appointed representatives and their employees.
- (3)
Firms are likely to find it convenient to include the required disclosure in their letterhead.
Exception: insurers
GEN 4.3.1 R (Disclosure in letters to private customers) does not apply in relation to:
- (1)
general insurance business if:
- (a)
the State of the risk is an EEA State other than the United Kingdom; or
- (b)
the State of the risk is outside the EEA and the client is not in the United Kingdom when the contract of insurance is entered into; or
- (a)
- (2)
long-term insurance business if:
- (a)
the client is habitually resident in an EEA State other than the United Kingdom; or
- (b)
the client is habitually resident outside the EEA and is not present in the United Kingdom when the contract of insurance is entered into.
- (a)
Exception: authorised professional firms
For an authorised professional firm, GEN 4.3.1 R (Disclosure in letters to private customers) does not apply with respect to its non-mainstream regulated activities.