Related provisions for MCOB 4A.1.3
41 - 60 of 385 items.
Where article 20(3) of the Market Abuse Regulation requires a disclosure of the proportions of all investment recommendations published that are “buy”, “hold”, “sell” or equivalent terms, the FCA considers it important for these equivalent terms to be consistent and meaningful to the recipients in terms of the course of actions being recommended, particularly for non-equity material.22
(1) 1This appendix sets out how:3(a) 3a firm should handle complaints relating to the sale of a payment protection contract by the firm which express dissatisfaction about the sale, or matters related to the sale, including where there is a rejection of claims on the grounds of ineligibility or exclusion (but not matters unrelated to the sale, such as delays in claims handling); and3(b) 3a firm that is a CCA lender and which has received such a complaint should consider whether
3This appendix provides for a two-step approach to handling complaints. Firms should apply it as follows: (1) a firm which is not a CCA lender should only consider step 1;(2) a CCA lender which did not sell the payment protection contract should only consider step 2, but does not have to do so if it knows the complainant has already made a complaint about a breach or failing in respect of the same contract and the outcome was that the firm which considered that complaint concluded
3At step 2, the aspects of complaint handling dealt with in this appendix are how a CCA lender should:(1) assess a complaint to establish whether failure to disclose commission gave rise to an unfair relationship under section 140A of the CCA; and(2) determine the appropriate redress (if any) to offer to a complainant.
In this appendix:(1) (a) at step 1,3 “historic interest” means the interest the complainant paid to the firm because a payment protection contract was added to a loan or credit product;3(b) at step 2, “historic interest” means in relation to any sum, the interest the complainant paid as a result of that sum being included in the loan or credit product;32(2) "simple interest" means a non-compound rate of 8% per annum;3(3) "claim" means a claim by a complainant seeking to rely upon
A listed company that is not already required to comply with the obligations referred to under article 17 of the Market Abuse Regulation12 must comply with those obligations12 as if it were an issuer for the purposes of the disclosure requirements12 and transparency rules subject to article 22 of the Market Abuse Regulation12.1
A listed company must ensure that the FCA is provided with up to date contact details of at least one appropriate person nominated by it to act as the first point of contact with the FCA in relation to the company's compliance with the listing rules and the disclosure requirements12 and transparency rules.
(1) This rule applies to a listed company that has published:(a) any unaudited financial information in a class 1 circular or a prospectus; or(b) any profit forecast or profit estimate.(2) The first time a listed company publishes financial information as required by DTR 4.17 after the publication of the unaudited financial information, profit forecast or profit estimate, it must:7(a) reproduce that financial information, profit forecast or profit estimate in its next annual report
(1) A firm must provide appropriate information in a comprehensible form to a client about:(a) the firm and its services;(b) designated investments and proposed investment strategies; including appropriate guidance on and warnings of the risks associated with investments in those designated investments or in respect of particular investment strategies;(c) execution venues; and(d) costs and associated charges;so that the client is reasonably able to understand the nature and risks
3A firm, other than a venture capital firm, which is managing investments for a professional client that is not a natural person must disclose clearly on its website, or if it does not have a website in another accessible form:(1) the nature of its commitment to the Financial Reporting Council’s Stewardship Code; or(2) where it does not commit to the Code, its alternative investment strategy.
(1) A firm (B) must provide a reference to another firm (A) as soon as reasonably practicable if:(a) A is considering:(i) permitting or appointing someone (P) to perform a controlled function; or(ii) issuing a certificate under the certification regime for P; or(iii) appointing P to another position in the table in SYSC 22.2.3R; (as explained in more detail in the table in SYSC 22.2.3R);(b) A makes a request, for a reference or other information in respect of P from B, in B’s
Table: What positions need a reference
Position |
When to obtain reference |
Comments |
(A) Permitting or appointing someone to perform an FCA controlled function or a PRA controlled function. |
One month before the end of the application period Where a request for a reference would require: (a) the firm requesting the reference; (b) the employer giving the reference; or (c) any other person; to make a mandatory disclosure prior to P disclosing to its current employer that such application has been made, the date is the end of the application period. |
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(B) Issuing a certificate under section 63F of the Act (Certification of employees by2 authorised persons). |
Before the certificate is issued |
This includes renewing an existing certificate. |
(C) Appointing someone to any of the following positions (as defined in the PRA Rulebook): (a) a notified non-executive director; (b) a credit union non-executive director; or (c) a key function holder. |
Not applicable |
SYSC 22.2.1R (obligation to obtain a reference) does not apply to a firm appointing someone to the position in column (1). However SYSC 22.2.2R does apply to a firm asked to give a reference to a firm appointing someone to the position in column (1). |
Note 1: Mandatory disclosure means an obligation in any applicable laws, regulations or rules to declare or disclose information to the public. |
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Note 2: P refers to the employee or ex-employee about whom the reference is given as defined in more detail in SYSC 22.2.1R and SYSC 22.2.2R. |
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Note 3: The application period means the period for consideration referred to in section 61 of the Act (Determination of application). |
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This rule sets out time limits about the obligation to update a reference in SYSC 22.2.4R. (1) If B still employs P, SYSC 22.2.4R applies throughout the period B remains employed.(2) If B no longer employs P, the obligation to update ends six years after P ceased to be employed by B.(3) If B no longer employs P and the matters or circumstances are not serious misconduct by P, B does not have to disclose something if it did not occur or exist in the six year period ending on the
In good time before a credit agreement is made and, where section 58 applies, before an unexecuted agreement is sent to the customer for signature a firm must:(1) disclose key contract terms and conditions of the prospective credit agreement;(2) disclose any features of the prospective credit agreement which carry a particular risk to the customer;(3) inform the customer of the consequences of missing payments or of making underpayments, including the imposition of default charges,
Where a firm has reasonable grounds to suspect that the customer does not understand material aspects of the obligations they will take on and the resulting risks, under a regulated credit agreement, the firm:(1) must not enter into a regulated credit agreement; and (2) must provide further explanation of any such obligations or risks.
The declaration for the purposes of articles 60H(1)(c) and 60Q(b) of the Regulated Activities Order must have the following form and content- 2“Declaration by high net worth borrower or hirer(articles 60H(1) and 60Q of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001)2I confirm that I have received a copy of the statement of high net worth made in relation to me for the purposes of article 60H(1)(d) 2or article 60Q(c) of the Financial Services and
2Declaration by high net worth borrower under an MCD article 3(1)(b) credit agreementThe declaration for the purposes of article 60H(1)(c) of the Regulated Activities Order and of CONC 1.2.10R(2) must have the following form and content-
“Declaration by high net worth borrower under an MCD article 3(1)(b) credit agreement
(article 60H(1)(c) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001)I confirm that I have received a copy of the statement of
A statement of high net worth for the purposes of articles 60H(1)(d) and 60Q(c) of the Regulated Activities Order must have the following form and content: 2“Statement of High Net Worth(articles 60H(1) and 60Q of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001)2I/We* (insert full name) .............................................................. of (insert address and postcode).............................................................. confirm
A declaration for the purposes of articles 60C or 60O of the Regulated Activities Order must have the following form and content“Declaration for exemption relating to businesses(articles 60C and 60O of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001)I am/We are* entering this agreement wholly or predominantly for the purposes of a business carried on by me/us or intended to be carried on by me/us.I/We* understand that I/We* will not have the benefit
A firm must ensure that information:(1) includes the name of the firm;(2) is accurate and always gives a fair and prominent indication of any relevant risks when referencing6 any potential benefits of relevant business or a relevant investment6; (3) is sufficient for, and presented in a way that is likely to be understood by, the average member of the group to whom it is directed, or by whom it is likely to be received;6(4) does not disguise, diminish or obscure important items,
In deciding whether, and how, to communicate information to a particular target audience, a firm should take into account the nature of the product or business, the risks involved, the client's commitment, the likely information needs of the average recipient, and the role of the information in the sales process.
When communicating information, a firm should consider whether omission of any relevant fact will result in the6 information being insufficient, unclear, unfair or misleading. When considering whether a fact should be included in the communication or omitted from it, a firm should bear in the mind the guidance in COBS 4.2.2G to provide information which is appropriate and proportionate.7
(1) This rule applies if a firm (F1), in the course of performing MiFID or equivalent third country business, receives an instruction to provide3 an investment or ancillary service on behalf of a client (C) through another firm (F2), if F2 is:(a) a MiFID investment firm or a third country investment firm; or(b) an investment firm that is:(i) a firm or authorised in another EEA State; and(ii) subject to equivalent relevant requirements.(2) F1 may rely upon:(a) any information about
(1) This rule applies if the applicable4rule on reliance on other investment firms or insurance distributors (COBS 2.4.4 R and COBS 2.4.5AR4) does not apply.(2) A firm will be taken to be in compliance with any rule in this sourcebook that requires it to obtain information to the extent it can show it was reasonable for it to rely on information provided to it in writing by another person.
(1) In relying on COBS 2.4.6 R, a firm should take reasonable steps to establish that the other person providing written information is not connected with the firm and is competent to provide the information.(2) Compliance with (1) may be relied upon as tending to establish compliance with COBS 2.4.6 R.(3) Contravention of (1) may be relied upon as tending to establish contravention of COBS 2.4.6 R.
A firm must ensure that a financial statement sent to a lender on behalf of a customer: (1) is accurate and realistic and must present a sufficiently clear and complete account of the customer's income and expenditure, debts and the availability of surplus income; [Note: paragraph 3.24 of DMG](2) state any fees or charges being made by the firm; (3) is sent only after having obtained the customer's consent to send the statement and the customer's confirmation as to the accuracy
The format of the financial statement sent to lenders on behalf of the customer should be uniform and logically structured in a way that encourages consistent responses from lenders and reduces queries and delays. Firms may wish to use the Common Financial Statement facilitated by the Money Advice Trust or an equivalent or similar statement. [Note: paragraph 3.24 of DMG]
A firm must:(1) take reasonable steps to verify the customer's identity, income and outgoings; [Note: paragraph 3.26a of DMG](2) seek explanations if a customer indicates expenditure which is particularly high or low; and [Note: paragraph 3.26b of DMG](3) where applicable, notify a customer that a particular lender will not deal with the firm (for whatever reason), as soon as possible after the firm becomes aware that the customer owes a debt to that lender. [Note: paragraph 3.26l
Provided the conditions in PERG 8.12.25 G are met, the exemption in article 20 applies to any non-real time financial promotion. However, there is an additional condition where the subject matter of the financial promotion is shares or options, futures or contracts for differences relating to shares and the financial promotion identifies directly a person who issues or provides such an investment, or the subject matter of the financial promotion is a controlled claims management
The exceptions to the disclosure requirement are where the financial promotion is in either:(1) a publication, service or broadcast which has proper systems and procedures which prevent the publication of communications without disclosure of financial interests; or(2) a publication, service or broadcast which falls within the remit of:(a) the Code of Practice issued by the Press Complaints Commission; or(b) the OFCOM Broadcasting1 Code; or11(c) the Producers’ Guidelines issued
The effect of PERG 8.12.27G (2) is that financial promotions made by journalists in publications, services or broadcasts to which one of the codes or the guidelines apply are not subject to the disclosure requirement. This is so even if a financial promotion is made in breach of the codes or guidelines. Such financial promotions would remain to be dealt with by the body responsible for the code or guidelines and the publisher concerned. The code or guidelines may, of course, themselves
The effect of PERG 8.12.27G (1) is that a journalist will not breach section 21 by not disclosing a financial interest, providing that the publication, service or broadcast concerned operates proper systems and procedures. As with the exemption in article 12 of the Financial Promotion Order (see PERG 8.12.6 G), what proper systems and procedures are will be a matter ultimately for the courts to determine and may vary according to the medium used. It will depend upon all the circumstances
Persons such as experts or analysts may be approached to contribute at very short notice and may be overseas. In such cases, the systems and procedures referred to in PERG 8.12.29 G may not be practical. It is the FCA's opinion that, where occasional contributors are concerned, proper systems and procedures may include arrangements for ensuring that the need for disclosure (or the avoidance of financial interests) is drawn to the contributor’s attention before the communication
The action referred to in CONC 6.7.2 R should generally include:(1) notifying the customer of the risk of escalating debt, additional interest or charges and of potential financial difficulties; and [Note: paragraph 6.16 of ILG](2) providing contact details for not-for-profit debt advice bodies.[Note: paragraph 6.2 (box) of ILG]
(1) This rule applies to a regulated credit agreement for a credit card and to a retail revolving credit agreement.5(2) A firm must notify the customer of a proposed increase in the credit limit under the agreement:5(a) in the case of a regulated credit agreement for a credit card or a store card, at least 30 days before the increase comes into effect; and5(b) in the case of a retail revolving credit agreement (other than an agreement for a store card), at least 28 days before
For the purposes of CONC 6.7.7 R and CONC 6.7.10 R a customer is at risk of financial difficulties if the customer:(1) is two or more payments in arrears; or(2) has agreed a repayment plan with the firm in question; or(3) is in serious discussion with a firm which carries on debt counselling with a view to entering into a debt management plan and the firm has been notified of this fact.[Note: paragraph 6.10 (box) of ILG]
Where a firm increases a rate of interest based on a change in the risk presented by the customer, the firm must: (1) notify the customer that the rate of interest has been increased based on a change in risk presented by the customer; and (2) if requested by the customer provide a suitable explanation which may be a generic explanation for such increases.[Note: paragraph 6.20 (box) of ILG]
Before a firm agrees to refinance high-cost short-term credit, it must: (1) give or send an information sheet to the customer; and(2) where reasonably practicable to do so, bring the sheet to the attention of the customer before the refinance;in the form of the arrears information sheet issued by the FCA referred to in section 86A of the CCA with the following modifications:(3) for the title and first sentence of the information sheet substitute:“High-cost short-term loansFailing
If an issuer is required to notify information to a RIS at a time when a RIS is not open for business, it must distribute the information as soon as possible to:(1) not less than two national newspapers in the United Kingdom;(2) two newswire services operating in the United Kingdom; and(3) a RIS for release as soon as it opens.
In assessing redress, the firm should consider whether there are any other further losses that flow from its breach or failing or from its failure to disclose commission (as applicable), 1 that were reasonably foreseeable as a consequence of the firm's breach or failing or of its failure to disclose commission,1 for example, where the payment protection contract's cost or rejected claims contributed to affordability issues for the associated loan or credit which led to arrears
(1) This chapter sets out minimum requirements for a reference. It does not prevent a firm from including more than is required by this chapter.(2) If a firm does disclose more than is required by this chapter the reference should still meet its duties under general law to its former employee and the recipient (see SYSC 22.5.3G to SYSC 22.5.5G).
345(1) The Listing Principles in LR 7.2.1 R apply to every listed company in respect of all its obligations arising from the listing rules, disclosure requirements6, transparency rules and corporate governance rules.5(2) In addition to the Listing Principles referred to in (1), the Premium Listing Principles in LR 7.2.1A R apply to every listed company with a premium listing7in respect of all its obligations arising from the listing rules, disclosure requirements6, transparency
The Listing Principles and, if applicable, the Premium Listing Principles5 are designed to assist listed companies in identifying their obligations and responsibilities under the listing rules, disclosure requirements6, transparency rules and corporate governance rules.5 The Listing Principles and Premium Listing Principles5 should be interpreted together with relevant rules and guidance which underpin the Listing Principles and the Premium Listing Principles.55
An issuer, person discharging managerial responsibilities or connected person should consult with the FCA at the earliest possible stage if they:
- (1)
are in doubt about how the disclosure requirements2 apply in a particular situation.2
- (2)
[deleted]2
1Where a disclosure requirements and the disclosure guidance refers2 to consultation with the FCA, submissions should be made in writing other than in circumstances of exceptional urgency.
Address for correspondence
Note: The FCA's address for correspondence in relation to the disclosure requirements and the disclosure guidance2 is:
Primary Market Monitoring |
Enforcement and Markets Oversight Division2 |
The Financial Conduct Authority |
12 Endeavour Square3 |
London, E20 1JN3 |