1This chapter applies to every firm and with respect to every regulated activity, except that:

1. (1)

   for an incoming ECA provider, this chapter does not apply when the firm is acting as such;

2. (2)

   for an incoming EEA firm which has permission only for cross-border services and which does not carry on regulated activities in the United Kingdom, this chapter does not apply;

3. (3)

   for an incoming firm not falling under (1) or (2), this chapter does not apply to the extent that the firm is subject to equivalent rules imposed by its Home State;

   2
4. (4)

   for a UCITS qualifier, this chapter does not apply; and2

5. (5)

   only GEN 4.5 (Statements about authorisation and regulation by the FSA) applies in relation to MiFID or equivalent third country business and only where that MiFID or equivalent third country business is not business falling within paragraph 2 (Transactions between an MTF operator and its users), 3 (Transactions concluded on an MTF) or 4 (Transactions concluded on a regulated market) of Part 1 of COBS 1 Annex 1.32

   33

GEN 4.3 (Letter disclosure) applies in relation to activities carried on from an establishment maintained by the firm (or by its appointed representative) in the United Kingdom, subject to GEN 4.3.4 R (Exception: insurers).

GEN 4.4 (Business for private customers from non-UK offices) applies in connection with a regulated activity carried on from an establishment of the firm (or its appointed representative) that is not in the United Kingdom.

3 GEN 4.5 (Statements about authorisation and regulation by the FSA) applies in relation to activities carried on from an establishment maintained by the firm (or by its appointed representative) in the United Kingdom, provided that, in the case of the MiFID business of an EEAMiFID investment firm, it only applies to business conducted within the territory of the United Kingdom.

A firm must take reasonable care to ensure that every letter (or electronic equivalent) which it or its employees send to a retail client4, with a view to or in connection with the firm carrying on a regulated activity, includes the disclosure in GEN 4 Annex 1 R.1

GEN 4.3.1 R (Disclosure in letters to retail clients4) does not apply in relation to:

1. (1)

   general insurance business if:

   1. (a)

      the State of the risk is an EEA State other than the United Kingdom; or

   2. (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

2. (2)

   long-term insurance business if:

   1. (a)

      the client is habitually resident in an EEA State other than the United Kingdom; or

   2. (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.

For an authorised professional firm, GEN 4.3.1 R (Disclosure in letters to retail clients4) does not apply with respect to its non-mainstream regulated activities.

1. (1)

   1Where a firm has outsourced activities to a third party processor other than advising on life policies3, GEN 4.3.1 R does not apply to that third party processor when acting as such, so long as the outsourcing firm ensures that the third party processor and its employees comply with that rule as if it was the firm and they were employees of the firm.

2. (2)

   Where an appointed representative has outsourced insurance mediation activities other than advising on life policies3 or home finance mediation activities2to a third party processor, GEN 4.3.1 R does not apply to that third party processor when acting as such, so long as the appointed representative's principal ensures that the third party processor and its employees comply with that rule as if it was the appointed representative and they were the employees of the appointed representative.

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3. (3)

   Where an appointed representative of a firm is carrying on:

   1. (a)

      insurance mediation activities other than advising on life policies3; or

      3
   2. (b)

      home finance mediation activities;2

      2

   which have been outsourced to it by the firm, GEN 4.3.1 R does not apply to the firm when the appointed representative is carrying on the outsourced activities, so long as the firm ensures that the appointed representative and its employees comply with that rule as if it was the firm and they were employees of the firm.

1. (1)

   If, in any communication:

   1. (a)

      made to:2

      22
      1. (i)

         2(in relation to a non-investment insurance contract) aconsumer4;

         4
      2. (ii)

         2(in relation to a home finance transaction) a customer; or

      3. (iii)

         2(in all other cases) a retail client3; and

         3
   2. (b)

      in connection with a regulated activity carried on from an establishment of the firm (or its appointed representative) that is not in the United Kingdom;

   the firm indicates that it is an authorised person, it must also, where relevant, and with equal prominence, give the information in (2) in writing.

2. (2)

   The information required is that in some or all respects the regulatory system applying will be different from that of the United Kingdom. The firm may also indicate the protections and complaints or compensation arrangements available under another relevant system of regulation.

3. (3)

   A firm need not provide the information required by (1) if it has already provided it in writing to the customer2to whom the communication is made.

   2

1This section applies to a firm:

1. (1)

   communicating with a customer; or

2. (2)

   communicating or approving a financial promotion other than:

   1. (a)

      a financial promotion that would benefit from an exemption in the Financial Promotion Order if it were communicated by an unauthorised person;

   2. (b)

      a promotion of an unregulated collective investment scheme that would breach section 238(1) of the Act if made by an authorised person (firms may not communicate or approve such promotions).

A firm must not indicate or imply that it is authorised by the FSA in respect of business for which it is not so authorised.

A firm must not indicate or imply that it is regulated or otherwise supervised by the FSA in respect of business for which it is not regulated by the FSA.