do not apply to a financial promotion or a communication with a customer which clearly indicates that it is made solely in respect of credit broking in relation to a credit agreement secured by a legal or equitable mortgage on land.
A firm must, in a financial promotion or a document which is intended for individuals which relates to its credit broking, indicate the extent of its powers and in particular whether it works exclusively with one or more lenders or works independently.
[Note: section 160A(3) of CCA]
[Note: article 21(a) of the Consumer Credit Directive]
[Note: paragraphs 3.7e and 4.8b of CBG]
indicate to the customer in a prominent way the existence and nature3 of any financial arrangements with a lender that might impact upon the firm's impartiality in promoting or recommending a credit1 product to the3 customer or which might, if disclosed by the firm to the customer, affect the customer’s transactional decision in relation to the credit product3;
[Note: paragraphs 2.2, 6th bullet and 4.6 of CBG]1
only describe itself as independent if it is able to provide access to a representative range of credit1 products from the relevant product market on competitive terms and is not constrained in providing such access, for example, because of one or more agreements with lenders; and
[Note: paragraph 4.5 of CBG]1
[Note: paragraph 4.6 of CBG]
3Where the amount of any commission, fee or other remuneration payable under a financial arrangement in relation to the credit product in CONC 3.7.4G(2) that the firm is promoting or recommending varies due to a factor specified in the arrangement, for example a specific feature of the credit product or the level of work undertaken by the firm, the firm should make disclosure under CONC 3.7.4G in relation to the arrangement.
the firm has entered into arrangements (irrespective of how many other persons those arrangements are with) under which it may earn commission, fees or other remuneration in relation to two or more different credit products;
The disclosure in (2) may be in general terms, but it should enable the customer reasonably to appreciate the effect of the arrangements.
2CONC 3.7.5 R requires all financial promotions and communications with customers to specify the legal name of the firm: the rule does not prohibit the use of trading names, but does require the legal name to be given in addition to any trading name used. If the firm is a company registered under the Companies Act 2006, the firm's legal name will be the name by which it is registered.
A firm which is both a credit broker and a lender must ensure that any financial promotion that solely promotes its services as a credit broker states prominently that the financial promotion is promoting the firm's services as a credit broker and not its services as a lender.