MCOB 3.12 The Internet and other electronic media

This section contains guidance on the use of the Internet and other electronic media to communicate financial promotions2. Firms are also referred to the guidance in MCOB 2.7 (Application to electronic media and distance communications).

Any material, which meets the definition of a financial promotion of qualifying credit,3 a home reversion plan or a regulated sale and rent back agreement3,2 including any video or moving image material incorporated in any website containing such a financial promotion,2 should comply with the rules in this chapter. See PERG 81 (The Internet) for further guidance on financial promotions on the Internet, including the treatment of hyperlinks and banners.

As indicated in MCOB 3.3 (Application: where?), for the purposes of the financial promotion rules2 there are two types of approach to financial promotion2 communicated via the Internet and other electronic media:3

1. (1)

   real time financial promotions 2where the communication is in the form, for example, of a telephone conversation, or other form of interactive dialogue; and

   2
2. (2)

   non-real time financial promotions2 where the customer may, for example, choose from reading a description of the qualifying credit,3 home reversion plan or regulated sale and rent back agreement,32 through to the completion of a contract in a similar way to browsing through a leaflet rack. The rules in this chapter relating to hard copy financial promotions2 such as advertisements in magazines or newspapers apply equally to such promotions. E-mails, material displayed on a website and sound and television broadcasts are non-real time financial promotions2 (see MCOB 3.5.5 R(2)).

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1. (1)

   Before using the Internet, digital or any other form of interactive television or other electronic media to promote its services, a firm should refer to legislation such as the Data Protection Act 1998 and the Computer Misuse Act 1990, as well as to this chapter.

2. (2)

   In relation to financial promotions2 communicated by way of television, firms will want to have regard to Guidance Note 3 of the ITC Code of Advertising Standards and Practice on the use and appearance of superimposed text.

   2
3. (3)

   When designing websites and other electronic media, firms should be aware of the difficulties that can arise when reproducing certain colours and printing certain types of text. These difficulties could cause problems with the presentation and retrieval of required information. Any financial promotion of qualifying credit,3a home reversion plan or a regulated sale and rent back agreement32 communicated by the Internet, digital or other forms of interactive television is subject to the requirements on form and content in this chapter.2

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The FSA website http://www.fsa.gov.uk contains a wide range of information including pages of specific relevance to customers. Firms may, if they wish, include a reference or hyperlink to the FSA's site; this will not, however, replace any requirements of the financial promotion rules2.