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Status: You are viewing the version of the handbook as on 2007-10-31.

COB 3.1 Application: who?

Firms

COB 3.1.1R

This chapter applies to every firm (other than an ICVC) which communicates or approves a financial promotion.

COB 3.1.2G

This chapter applies generally to firms in relation to all financial promotions. This wide application is however cut back by COB 3.2 (Application: what?) and COB 3.3 (Application: where?) which limit the application of this chapter for:

  1. (1)

    financial promotions for deposits, general insurance contracts, pure protection contracts, reinsurance contracts, qualifying credit, home purchase plans and home reversion plans3;2

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  2. (2)

    financial promotions which fall within the scope of the exemptions in the Financial Promotion Order or the additional exemptions set out in COB 3.2.5 R; and

  3. (3)

    financial promotions to persons outside the United Kingdom.

Appointed representatives

COB 3.1.3G

Under section 39(3) of the Act, a firm is responsible for financial promotions communicated by its appointed representatives when acting as such (see COB 1.7 (Appointed representatives)).

Nationals of other EEA States

COB 3.1.4G

A national of an EEA State (other than the United Kingdom) wishing to take advantage of the exemption in article 36 of the Financial Promotion Order in relation to any controlled activity lawfully carried on by him in that State, should act in conformity with the rules in this chapter.

Authorised professional firms1

COB 3.1.5R
  1. (1)

    COB 3 does not apply to an authorised professional firm in relation to the communication of a financial promotion if the following conditions are satisfied:

    1. (a)

      the firm's main business must be the practice of its profession IPRU(INV) 2.1.2R (3));

    2. (b)

      the financial promotion must be made for the purposes of and incidental to the promotion or provision by the firm of:

      1. (i)

        its professional services; or

      2. (ii)

        its non-mainstream regulated activities (see PROF 5.2); and

    3. (c)

      the financial promotion must not be communicated on behalf of another person who would not be able lawfully to communicate the financial promotion if he were acting in the course of business.

  2. (2)

    In (1)(b)(i), "professional services" means services:

    1. (a)

      which do not constitute a regulated activity; and

    2. (b)

      the provision of which is supervised and regulated by a designated professional body.

COB 3.1.6G

Authorised professional firms are reminded that in circumstances in which COB 3 does not apply to the firmCOB 2.1 (Clear, fair and not misleading communication) may apply.