COBS 4.8 Cold calls and other promotions that are not in writing
Application
This section applies to a firm in relation to the communication of 3a financial promotion that is not in writing, but it does not apply:
- (1)
to the extent that the financial promotion is an excluded communication;
- (2)
if the financial promotion is image advertising;
- (3)
if the financial promotion is a non-retail communication;1
- (4)
[deleted]2
2 - (5)
to the extent that the financial promotion relates to a pure protection contract that is a long-term care insurance contract.1
Restriction on cold calling
A firm must not make a cold call unless:
- (1)
the recipient has an established existing client relationship with the firm and the relationship is such that the recipient envisages receiving cold calls; or
- (2)
the cold call relates to a generally marketable packaged product which is not:
- (a)
a higher volatility fund; or
- (b)
a life policy with a link (including a potential link) to a higher volatility fund; or
- (a)
- (3)
the cold call relates to a controlled activity to be carried on by an authorised person or exempt person and the only controlled investments involved or which reasonably could be involved are:
- (a)
readily realisable securities (other than warrants); and
- (b)
generally marketable non-geared packaged products.
- (a)
Promotions that are not in writing
A firm must not communicate a solicited or unsolicited financial promotion that is not in writing, to a client3 outside the firm's premises, unless the person communicating it:
- (1)
only does so at an appropriate time of the day;
- (2)
identifies himself and the firm he represents at the outset and makes clear the purpose of the communication;
- (3)
clarifies if the client would like to continue with or terminate the communication, and terminates the communication at any time that the client requests it; and
- (4)
gives a contact point to any client with whom he arranges an appointment.