BCOBS 2.1 Purpose and Application: Who and what?

The Consumer Duty requires a firm to act to deliver good outcomes for retail customers, in accordance with the relevant obligations in PRIN 2A. PRIN 2A.5.3R(1)(c) also requires firms’ communications to equip retail customers to make decisions that are effective. The Consumer Duty also applies to an electronic money institution, a payment institution and a registered account information service provider with respect to provision of payment services and the issuance of electronic money. This chapter reinforces these requirements by requiring a firm and these other providers to pay regard to the information needs of banking customers, payment service customers and electronic money customers when communicating with, or making a financial promotion or a payment service or electronic money promotion to, them and to communicate information in a way that is clear, fair and not misleading.

This chapter applies to a provider:

1. (1)

   communicating with a payment service customer or an electronic money customer in relation to the provision of a payment service or the issuing of electronic money and activities connected with those activities; or

2. (2)

   communicating a payment service or electronic money promotion.

In accordance with BCOBS 1 Annex 1 paragraph 1.1R, BCOBS 2 does not apply to a MiFID investment firm, a third country investment firm or a MiFID optional exemption firm in relation to the sale of structured deposits. A MiFID investment firm, a third country investment firm or a MiFID optional exemption firm is subject to the rules specified in COBS 1.1.1AR(2) in relation to the sale of structured deposits.

1. (1)

   The effect of section 55NA of the Act is that a firm is unable to approve a financial promotion unless:

   1. (a)

      the firm is a permitted approver in relation to the financial promotion; or

   2. (b)

      an approver permission exemption applies.

2. (2)

   SUP 6A contains guidance on applying for approver permission.