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Status: You are viewing the version of the handbook as on 2005-06-30.

COB 3.10 Unsolicited real time financial promotions

Meaning of "solicited" and "unsolicited" real time financial promotion

COB 3.10.1R
  1. (1)

    An unsolicited real time financial promotion is a real time financial promotion which is not solicited as described in (2). 3

  2. (2)

    A solicited real time financial promotion is a real time financial promotion which is solicited, that is, it is made in the course of a personal visit, telephone call or other interactive dialogue if that call, visit or dialogue:

    1. (a)

      was initiated by the recipient of the financial promotion; or

    2. (b)

      takes place in response to an express request from the recipient of the financial promotion;

    and it is clear from all the circumstances when the call, visit or dialogue is initiated or requested that during the course of the visit, call or dialogue financial promotions would be made concerning the kind of controlled activities or controlled investment to which the financial promotion relates.

  3. (3)

    In (2), a person is not to be treated as expressly requesting a call, visit or dialogue:

    1. (a)

      because he omits to indicate that he does not wish to receive any or any further visits or calls or to engage in any or any further dialogue;

    2. (b)

      because he agrees to standard terms that state that such visits, calls or dialogues will take place unless he has signified clearly that, in addition to agreeing to the terms, he is willing for them to take place.

  4. (4)

    If a real time communication is solicited by a person ("R") it is treated as also having been solicited by any other person to whom it is made at the same time as R if that other person is a close relative of R or is expected to engage in any investment activity jointly with R.

COB 3.10.2G

COB 3.10.1 R is based on article 8 of the Financial Promotion Order. Guidance on whether a real time financial promotion is solicited is contained in AUTH App 1.10 (Types of financial promotion).2

Restriction of unsolicited real time financial promotions

COB 3.10.3R

A firm must not make an unsolicited real time financial promotion unless:

  1. (1)

    the recipient has an established existing customer relationship with the firm and the relationship is such that the recipient envisages receiving unsolicited real time financial promotions; or

  2. (2)

    the financial promotion relates to a generally marketable packaged product which is not:

    1. (a)

      a higher volatility fund; or

    2. (b)

      a life policy with a link (including a potential link) to a higher volatility fund; or1

  3. (3)

    the financial promotion:

    1. (a)

      relates to a controlled activity to be carried on by an authorised person or exempt person; and

    2. (b)

      the only controlled investments involved or which reasonably could be involved are:

      1. (i)

        readily realisable securities (other than warrants); and

      2. (ii)

        generally marketable non-geared packaged products.1

COB 3.10.4G

Firms are reminded of the exemptions in COB 3.2.5 R; COB 3.10.3 R does not prohibit an exempt unsolicited real time financial promotion.