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  5. Point in time
    2013-09-02

MCOB 3.9 21Confirmation of compliance: financial promotions of qualifying credit, home reversion plans or regulated sale and rent back agreements2

MCOB 3.9.1R
  1. (1)

    Before a firm communicates or approves a non-real time financial promotion of qualifying credit,2 a home reversion plan or a regulated sale and rent back agreement21 it must confirm that the financial promotion1 complies with the rules in this chapter.

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  2. (2)

    A firm must arrange for the confirmation exercise in (1) to be carried out by an individual or individuals with appropriate expertise.

MCOB 3.9.2G
  1. (1)

    'Appropriate1 expertise' will vary depending on the complexity of the financial promotion1 and the qualifying credit,2 home reversion plan or regulated sale and rent back agreement21 to which it relates. The individuals engaged by a firm to confirm the compliance of its financial promotions1 with this chapter may themselves have different levels of expertise and therefore a different level of authority for confirmation depending on the type of promotion and the qualifying credit, home reversion plan or regulated sale and rent back agreement21 involved.

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  2. (2)

    A firm may arrange for a third party with appropriate expertise to carry out the confirmation exercise on the firm's behalf, but the responsibility for the financial promotion1 remains with the firm.

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Withdrawing confirmation

MCOB 3.9.3R

If, at any time after it has completed a confirmation exercise in MCOB 3.9.1 R(1), a firm becomes aware that a financial promotion1 no longer complies with the rules in this chapter, it must ensure that the financial promotion1 is withdrawn as soon as is reasonably practicable by:

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  1. (1)

    ceasing to communicate it;

  2. (2)

    withdrawing its approval (if applicable); and

  3. (3)

    notifying any person that the firm knows to be relying on its approval (if applicable) or confirmation (under MCOB 3.9.5 R).

MCOB 3.9.4G
  1. (1)

    MCOB 3.9.3 R is of particular importance to a financial promotion1, such as a product brochure, that a firm uses over a period of time. It has little application to a financial promotion1 which is of its nature ephemeral, for example a mobile phone text message. Further, a financial promotion1 which clearly speaks as at a particular date will not cease to comply with the rules in this chapter merely because the passage of time has rendered it out-of-date. This does not mean, however, that a financial promotion1 can include information (such as price information) which is likely to become outdated during the currency of the financial promotion1 without the firm having regard to the need for any financial promotion1 to be clear, fair and not misleading. See further MCOB 3.6.5 G (2).

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  2. (2)

    For compliance with MCOB 3.9.3 R, the FCA will expect a firm to monitor its relevant financial promotions1 as part of the firm's routine compliance monitoring procedures. A firm may find it helpful to designate a relevant financial promotion1 with a 'review date', a date at which the financial promotion1 should be checked once more against the rules in this chapter. If it is found no longer to meet these requirements it should be withdrawn as soon as is reasonably practicable.

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  3. (3)

    If at any time a firm becomes aware that customers may have been misled by a financial promotion1 it should consider whether customers who have responded to the financial promotion1 should be contacted with a view to explaining the position and offering any appropriate form of redress to those who have suffered financial loss.

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Communicating a financial promotion where another firm has confirmed compliance

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MCOB 3.9.5R

A firm will not contravene any of the rules in this chapter in circumstances where it (firm 'A') communicates a non-real time financial promotion1 which has been produced by another person provided that:

1
  1. (1)

    A takes reasonable care to establish that another firm (firm 'B') has already confirmed the compliance of the financial promotion1 in accordance with MCOB 3.9.1 R;

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  2. (2)

    A takes reasonable care to establish that A communicates the financial promotion1 only to recipients of the type for whom it was intended at the time B carried out the confirmation exercise; and

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  3. (3)

    so far as A is, or ought reasonably to be, aware:

    1. (a)

      the financial promotion1 has not ceased to be clear, fair and not misleading since that time; and

      1
    2. (b)

      B has not withdrawn the financial promotion1.