ICOB 3.1 Application: general
- (1)
ICOB 3.2.1 R states that this chapter applies generally to firms in relation to all non-investment financial promotions. But, this wide application is cut back by ICOB 3.3(Application: what?) and ICOB 3.4(Application: where?) which limit the application of this chapter for:
- (a)
non-investment financial promotions which fall within the scope of the exemptions in the Financial Promotion Order or the additional exemptions set out in ICOB 3.3.6 R; and
- (b)
non-investment financial promotions to persons outside the United Kingdom.
- (a)
- (2)
ICOB 3.1.2 G contains a table summarising some of the exemptions in the Financial Promotion Order that are likely to be of particular interest to firms. A firm which communicates or approves only financial promotions that fall within an exemption need not concern itself with ICOB 3.
Financial Promotion Order exemptions.
This table belongs to ICOB 3.1.1 G (2). In this table references to 'relevant insurance activity' are to effecting and carrying out a non-investment insurance contract as principal. |
|
Financial Promotion Order article no. and name of exemption |
Summary of exemption |
Article 17 (Generic promotions) |
A non-investment financial promotion that does not identify (directly or indirectly) an insurer or any person as a person who carries on a controlled activity in relation to a non-investment insurance contract is exempt from ICOB. So an insurance intermediary advertising insurance mediation services is exempt from ICOB 3 providing the advertisement does not name an insurer. This is because the activities of the insurance intermediary do not constitute controlled activities. For further guidance see AUTH App 1.12.14 G to AUTH App 1.12.17 G. |
Article 24 (Relevant insurance activity: non-real time communications) |
A non-investment financial promotion which contains the following information is exempt from ICOB 3: (1) the full name of the insurance undertaking; (2) the country or territory in which the insurance undertaking is incorporated (described as such); (3) if different from (2), the country or territory in which the insurance undertaking's principal place of business is situated (described as such); (4) whether or not the insurance undertaking is regulated in respect of its insurance business; (5) if the insurance undertaking is regulated, the name of the regulator in its principal place of business or, if there is more than one regulator, the name of the prudential regulator; (6) whether any transaction to which the non-investment financial promotion relates would be covered by a dispute resolution scheme or compensation scheme, if so identifying each such scheme. |
Article 25 (Relevant insurance activity: non-real time communications: reinsurance and large risks) |
A non-investment financial promotion which concerns only a reinsurance contract or a contract of large risks is exempt from ICOB 3. |
Article 26 (Relevant insurance activity: real time communications) |
ICOB 3 does not apply to a non-investment financial promotion which is communicated in the course of a personal visit, telephone conversation or other interactive dialogue. This does not include interactive dialogue by means of the exchange of letters or emails or in a publication. Such communication will be deemed to be non-real time and will be subject to ICOB 3, unless another exemption applies. For further guidance see AUTH App 1.10.2 G. |
A communication may contain both a non-investment financial promotion and one or more of a financial promotion and a qualifying credit promotion, for example, a leaflet from a firm which describes the range of insurance, savings and mortgage products it provides. In such cases,ICOB 3, COB 3 and MCOB 3 will all be relevant.