ECO 2.2 Modification of the content and territorial scope of COB
Lifting of rules included in the derogations
In relation to:
- (1)
an electronic commerce activity carried on from an establishment in the United Kingdom with or for an EEA ECA recipient who is a consumer; and1
- (2)
a financial promotion which is an outgoing electronic commerce communication made to or directed at a consumer;1
a firm is not required to comply with any of the provisions mentioned in ECO 1.2.6 E 1(a) and (1)(c) (essential information) or, if it is an insurer carrying on insurance business falling within the scope of the Insurance Directives, ECO 1.3.3 R.1
The provisions mentioned in ECO 1.2.6 E (1)(a) and ECO 1.2.6 E (1)(c) and ECO 1.3.3 R are those that the United Kingdom, as a Host State, applies to incoming ECA providers under the 'consumer contract derogation' and 'insurance derogation' respectively. A corollary of this approach is that these provisions are disapplied to:
- (1)
an outgoing ECA provider when it provides electronic commerce activities to an EEA ECA recipient who is a consumer; and1
- (2)
1a firm, in relation to a financial promotion which is an outgoing electronic commerce communication made to or directed at a consumer;
The provisions at ECO 1.2.6 E, ECO 1.2.6 E (1)(b) and ECO 1.2.6 E (1)(d) do not apply in these situations1 in any event.1
Financial promotion
- (1)
In relation to a financial promotion which is an outgoing electronic commerce communication, a firm must comply with COB 3 (Financial promotion), ICOB 3 (Financial promotion)3 and MCOB 3 (Financial promotion) as if the person to whom the communication is made or directed was in the United Kingdom.21
- (2)
Accordingly, (1) overrides COB 3.3 (Application: where?), ICOB 3.4 (Application: where?)3 and MCOB 3.3 (Application: where?).2
- (3)
But (1) is subject to ECO 2.2.1 R, which disapplies certain COB3 rules applicable to incoming ECA providers when dealing with consumers.2
The effect of ECO 2.2.3 R is to apply the whole of COB 3, ICOB 33 and MCOB 3, where relevant, to outgoing electronic commerce communications1, except those provisions of COB 3, ICOB 33 and MCOB 3 identified in ECO 2.2.1 R. (See ECO 2.2.2 G for an explanation of this approach.)2