MCOB 3.4 Purpose

Section 21(1) of the Act (Restriction on financial promotion) imposes a restriction on the communication of financial promotions by unauthorised persons. A person must not, in the course of business, communicate a financial promotion1 unless:

1. (a)

   he is an authorised person; or

2. (b)

   the content of the financial promotion1 is approved by an authorised person.

   1

However, the Financial Promotion Order exempts from the restriction created by section 21(1) of the Act certain types of financial promotions.

The purpose of this chapter is to provide rules and guidance for a firm which wishes to communicate or approve a financial promotion of qualifying credit or of a home reversion plan.1

This chapter amplifies, for activities within its scope Principle 6 (Customers' interests) and Principle 7 (Communications with clients).1