ICOB 1.4 Application in respect of electronic commerce activities and communications

1. (1)

   ICOB 1.4 applies to a firm:

   1. (a)

      which is an electronic commerce activity provider, that is, any firm which carries on an electronic commerce activity;

   2. (b)

      in relation to a financial promotion which is an electronic commerce communication;

   3. (c)

      which concludes distance contracts, the making or performance of which constitutes, or is part of, insurance mediation activity in relation to non-investment insurance contracts.

2. (2)

   Paragraph (1) means that firms need to be aware of this section whenever they are providing a service which:

   1. (a)

      is normally provided for remuneration;

   2. (b)

      is provided at a distance;

   3. (c)

      is so provided by means of electronic equipment for the processing (including digital compression) and storage of data;

   4. (d)

      is so provided at the individual request of a recipient of the service.

The modifications made to ICOB resulting from the introduction of the E-Commerce Directive are of three kinds:

1. (1)

   ECO 1.1.6 R modifies ICOB so that a firm providing an electronic commerce activity from an establishment elsewhere in the EEA to a recipient who is in the United Kingdom (an incoming ECA provider) is not required to comply with any provisions of ICOB.

2. (2)

   ECO 2:

   1. (a)

      modifies ICOB so that, in relation to a financial promotion which is an outgoing electronic commerce communication, ICOB 3 has an extended application to cover the whole of the EEA; and

   2. (b)

      obliges such a firm, in providing an electronic commerce activity within the EEA, to comply with the minimum information and other requirements in the E-Commerce Directive;

   otherwise ICOB applies in the usual way to such a firm.

3. (3)

   ECO 3 applies to a firm providing an electronic commerce activity from an establishment in the United Kingdom to a recipient who is in the United Kingdom or in a non-EEA State (a domestic ECA provider). Such a firm has to comply with ICOB in the usual way and so the requirements in ECO 3 are in addition to ICOB. ECO 3 sets out the minimum information and other requirements in the E-Commerce Directive.