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AUTH App 1.36 Illustrative tables

Financial Promotions: flowchart

AUTH App 1.36.1G

This flowchart sets out the matters which a person will need to consider to see if the restriction in section 21 of the Act applies to his communications. It is referred to in AUTH App 1.2.5 G.

AUTH_App_1.36.1G

Controlled activities and controlled investments

AUTH App 1.36.2G

This table lists the activities that are controlled activities and the investments that are controlled investments under the Financial Promotion Order. It is referred to in AUTH App 1.7.2 G

AUTH App 1.36.3G

Controlled activities

1.

Accepting deposits.

2.

Effecting and carrying out contracts of insurance.

3.

Dealing in securities and contractually based investments.

4.

Arranging deals in investments.

5.

Managing investments.

6.

Safeguarding and administering investments.

7.

Advising on investments.

8.

Advising on syndicate participation at Lloyd's.

9.

Providing funeral plan contracts.2

10.

Providing qualifying credit.2

10A.2

Arranging qualifying credit etc.2

10B.2

Advising on qualifying credit etc.2

11.

Agreeing to do anything in 3 to 10B above.2

AUTH App 1.36.4G

Controlled investments

12.

A deposit.

13.

Rights under a contract of insurance.

14.

Shares etc.

15.

Instruments creating or acknowledging indebtedness (referred to in the Glossary as debentures).

16.

Government and public securities.

17.

Instruments giving entitlement to investments (referred to in the Glossary as warrants).

18.

Certificates representing certain securities.

19.

Units in a collective investment scheme.

20.

Rights under a stakeholder pension scheme.

21.

Options.

22.

Futures.

23.

Contracts for differences etc.

24.

Lloyd's syndicate capacity and syndicate membership.

25.

Funeral plan contracts (with effect from a date to be announced).

26.

Agreements for qualifying credit (with effect from a date to be announced).

27.

Rights to or interests in anything falling under 12 to 25 above.

Application of exemptions to forms of financial promotion

AUTH App 1.36.5G

This table identifies the types of financial promotion to which each exemption in the Financial Promotions Order applies. It is referred to in AUTH App 1.11.2 G and AUTH App 1.14.1 G.

AUTH App 1.36.6G

Application of Exemptions to Forms of Promotions

Financial Promotion Order

Applies to

Article No.

Title and AUTH App 1 reference (where applicable)

Unsolicited real time

Solicited real time

Non-real time (solicited or unsolicited)

12

Communications to overseas recipients (1.12.2G)

*1

*

*

13

Communications from customers and potential customers (1.12.9G)

*

*

*

14

Follow up non-real time communications and solicited real time communications (1.12.10G)

*

*

15

Introductions (1.12.11G)

*

*

16

Exempt persons (1.12.12G)

*2

*3

*3

17

Generic promotions (1.12.14G and 1.21.4G)

*

*

*

18

Mere conduits (1.12.18G)

*

*

*

18A

Outgoing electronic commerce communications: mere conduits, caching and hosting

*

*

*

19

Investment professionals (1.12.21G and 1.21.5G)

*

*

*

20

Communications by journalists (1.12.23G)

*

20A

Promotion broadcast by company director etc (1.12.23G and 1.21.6G)

*

*

*

20B

Incoming electronic commerce communications (1.12.38G)

*

*

*

22

Deposits : non-real time communications (1.13)

*

23

Deposits : real time communications (1.13)

*

*

24

Relevant insurance activity : non-real time communications (1.13)

*

25

Relevant insurance activity : non-real time communications : reinsurance and large risks (1.13)

*

26

Relevant insurance activity : real time communications (1.13)

*

*

28

One-off non-real time communications and solicited real time communications (1.14.3G)

*

*

28A

One-off unsolicited real time communications (1.14.11G)

*

29

Communications required or authorised by enactments

*

*

*

30

Overseas communicators: solicited real time communications (1.14.15G)

*

31

Overseas communicators: non-real time communications to previously overseas customers (1.14.17G)

*

32

Overseas communicators: unsolicited real time communications to previously overseas customers (1.14.16G)

*

33

Overseas communicators: unsolicited real time communications to knowledgeable customers (1.14.16G)

*

34

Governments, central banks etc

*

*

35

Industrial and provident societies

*

*

36

Nationals of the EEA States other than United Kingdom (1.14.18G)

*

*

37

Financial markets

*

*

38

Persons in the business of placing promotional material

*

*

*

39

Joint enterprises (1.14.19G)

*

*

*

40

Participants in certain recognised collective investment schemes

*

*

41

Bearer instruments: promotions required or permitted by market rules (1.14.42G)

*

*

42

Bearer instruments: promotions to existing holders (1.14.42G)

*

*

43

Members and creditors of certain bodies corporate (1.14.41G and 1.21.8G)

*

*

44

Members and creditors of open-ended investment companies

*

*

45

Group companies

*

*

*

46

Qualifying credit to bodies corporate

*

*

*

47

Persons in the business of disseminating information (1.21.10G)

*

*

*

48

Certified high net worth individuals (1.14.21G)

*

*

49

High net worth companies, unincorporated associations etc (1.14.25G)

*

*

*

50

Sophisticated investors (1.14.27G)

*

*

*

51

Associations of high net worth or sophisticated investors (1.14.29G)

*

*

52

Common interest group of a company (1.14.30G)

*

*

53

Settlors, trustees and personal representatives

*

*

*

54

Beneficiaries of trust, will or intestacy

*

*

*

55

Communications by members of professions (1.15.1G)

*

*

55A

Non-real time communication by members of the professions. (1.15.5G)

*

56

Remedy following report by Parliamentary Commissioner for Administration

*

*

*

57

Persons placing promotional material in particular publications

*

*

*

58

Acquisition of interest in premises run by management companies

*

*

59

Annual accounts and directors' report (1.21.11G)

*

*

*

60

Participation in employee shares schemes

*

*

*

61

Sale of goods and supply of services

*

*

62

Sale of body corporate (1.14.35G)

*

*

*

64

Takeovers of relevant unlisted companies

*

*

*

65

Takeovers of relevant unlisted companies: warrants etc

*

*

*

66

Takeovers of relevant unlisted companies: application forms

*

*

*

67

Promotions required or permitted by market rules (1.21.13G)

*

*

68

Promotions in connection with admission to certain EEA markets (1.21.16G)

*

*

69

Promotions of securities already admitted to certain markets (1.21.17G)

*

*

70

Promotions in connection with listing applications

*

*

71

Promotions included in listing particulars etc

*

72

Promotions included in prospectus for public offer of unlisted securities (1.21.20G)

*

73

Material relating to prospectus for public offer of unlisted securities

*

74

Approval of communication prior to Order coming into force

*4

*4

*1

in limited circumstances only - see article 12(2) of the Financial Promotion Order

1 for the purpose of article 16 (2) only

2 for the purpose of article 16 (1) only

3 for the purpose of article 16 (1) only

4 although article 74 applies to real time communications it may be unlikely to do so in practice. This is because it relates to advertisements which are approved under section 57 of the Financial Services Act 1986 or communications approved in accordance with COB 3. Such advertisements and communications are likely to be non-real time communications.