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Application provision

3.1 This Chapter:

  1. (1) subject to (2), applies to:
    1. (a) every firm and with respect to every regulated activity;
    2. (b) activities carried on from an establishment maintained by the firm (or by its appointed representative) in the UK;
    3. (c) letters delivered by hand, sent by post and sent by fax and also electronic mail;
    4. (d) letters sent by any of the firm’s employees, which includes its appointed representatives and their employees.
  2. (2) does not apply to:
    1. (a) an incoming ECA provider when the firm is acting as such;
    2. (b) an incoming EEA firm which has permission only for cross border services and which does not carry on regulated activities in the UK;
    3. (c) an incoming firm not falling under (a) or (b), to the extent that the firm is subject to equivalent rules imposed by its home Member State;
    4. (d) MiFID or equivalent third country business;
    5. (e) general insurance business if:
      1. (i) the State of the risk is an EEA State other than the UK; or
      2. (ii) the State of the risk is outside the EEA and the policyholder is not in the UK when the contract of insurance is entered into;
    6. (f) long-term insurance business if:
      1. (i) the policyholder’s habitual residence is in an EEA State other than the UK; or
      2. (ii) the policyholder’s habitual residence is outside the EEA and is not present in the UK when the contract of insurance is entered into; or
    7. (g) text messages, account statements, business cards or compliment slips (used as such).

3.1

02/04/2015

This Chapter:

  1. (1) subject to (2), applies to:
    1. (a) every firm and with respect to every regulated activity;
    2. (b) activities carried on from an establishment maintained by the firm (or by its appointed representative) in the UK;
    3. (c) letters delivered by hand, sent by post and sent by fax and also electronic mail;
    4. (d) letters sent by any of the firm’s employees, which includes its appointed representatives and their employees.
  2. (2) does not apply to:
    1. (a) an incoming ECA provider when the firm is acting as such;
    2. (b) an incoming EEA firm which has permission only for cross border services and which does not carry on regulated activities in the UK;
    3. (c) an incoming firm not falling under (a) or (b), to the extent that the firm is subject to equivalent rules imposed by its home Member State;
    4. (d) MiFID or equivalent third country business;
    5. (e) general insurance business if:
      1. (i) the State of the risk is an EEA State other than the UK; or
      2. (ii) the State of the risk is outside the EEA and the policyholder is not in the UK when the contract of insurance is entered into;
    6. (f) long-term insurance business if:
      1. (i) the policyholder’s habitual residence is in an EEA State other than the UK; or
      2. (ii) the policyholder’s habitual residence is outside the EEA and is not present in the UK when the contract of insurance is entered into; or
    7. (g) text messages, account statements, business cards or compliment slips (used as such).

3.2

02/04/2015

A firm must take reasonable care to ensure that every letter (or electronic equivalent) which it or its employees send to a retail client, with a view to or in connection with the firm carrying on a regulated activity, includes the following disclosure:

  1. (1) for a UK domestic firm, "Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority";
  2. (2) for an overseas firm (which is not an incoming firm), "[Authorised and regulated by [name of the overseas regulator of the overseas firm in the jurisdiction of that overseas firm’s registered office (or, if it has no registered office, its head office)]]. Authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request."
    1. (a) If the overseas firm (which is not an incoming firm) translates the name of the overseas regulator into English it must ensure that the State in which the regulator is based is clear;
    2. (b) An overseas firm (which is not an incoming firm) is not required to disclose its applicable authorisation or regulation by the overseas regulator if it is not so authorised or regulated.
  3. (3) for an incoming firm without a top-up permission either:
    1. (a) "Authorised by [name of home Member State regulator]"; or
    2. (b) "Authorised by [name of home Member State regulator] and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our regulation by the Financial Conduct Authority and Prudential Regulation Authority are available from us on request".
    3. If the incoming firm without a top-up permission:
    4. (c) translates the name of the home Member State regulator into English it must ensure that the State in which the regulator is based is clear;
    5. (d) indicates or implies to a customer that is regulated by the PRA or the FCA, it must make the disclosure in (b).
  4. (4) for an incoming firm with a top-up permission, "Authorised by [name of home Member State regulator] and the Prudential Regulation Authority and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our authorisation and regulation by the Prudential Regulation Authority, and regulation by the Financial Conduct Authority are available from us on request";
  5.       If the incoming firm with a top-up permission translates the name of the home Member State regulator into English it must ensure that the State in which the regulator is based is clear.
  6. (5) for an appointed representative of a firm, "[Name of appointed representative] is an appointed representative of [name of firm] which is [then continue with the required disclosure of the firm]".
  7.       If the appointed representative has more than one principal, the disclosure must relate to the principal or principals responsible for the regulated activity or regulated activities concerned. The required disclosure of the firm is that which would apply were the firm to make the disclosure under the rules applicable to the firm.
  8. (6) for the Society, “Authorised under the Financial Services and Markets Act 2000".

3.3

02/04/2015

If a firm offers to make details about the extent of its authorisation by the PRA or regulation by the FCA or PRA available on request and a customer requests such details, it must provide those details in a way that is clear, fair and not misleading.

3.4

02/04/2015

Any person to which this Chapter applies is permitted to add words to the relevant required disclosure statement but only if the person has taken reasonable steps to satisfy itself that the presentation of its statutory status will, as a consequence, be fair, clear and not misleading and be 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.