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GEN 4.5 Statements about authorisation and regulation by the appropriate regulator

Application

GEN 4.5.1R

1This section applies to a firm:

  1. (1)

    communicating with a customer; or

  2. (2)

    communicating or approving a financial promotion other than:

    1. (a)

      a financial promotion that would benefit from an exemption in the Financial Promotion Order if it were communicated by an unauthorised person;

    2. (b)

      a promotion of an unregulated collective investment scheme that would breach section 238(1) of the Act if made by an authorised person (firms may not communicate or approve such promotions).

GEN 4.5.2G

GEN 4.5.1 R (1) does not apply to a firm when communicating with an eligible counterparty.

2
GEN 4.5.2AG

2However, misleading statements by a firm when communicated with an eligible counterparty may involve a breach of Principle 7 (Communications with clients) or Part 7 (Offences relating to financial services) of the Financial Services Act 2012, as well as giving rise to private law actions for misrepresentation.

The duty

GEN 4.5.3R

A firm must not indicate or imply that it is authorised by the FCA2 in respect of business for which it is not so authorised.

2
GEN 4.5.3AR

2A firm must not indicate or imply that it is authorised by the PRA in respect of business for which it is not so authorised.

GEN 4.5.4R

A firm must not indicate or imply that it is regulated or otherwise supervised by the FCA2 in respect of business for which it is not regulated by the FCA2.

22
GEN 4.5.4AR

2A firm must not indicate or imply that it is regulated or otherwise supervised by the PRA in respect of business for which it is not regulated by the PRA.

GEN 4.5.5G

SUP 13A Annex 1 provides guidance on the application of the Handbook to an incoming EEA firm.

GEN 4.5.6G
  1. (1)

    Neither an incoming EEA firm nor an incoming Treaty firm is authorised by the FCA or PRA2 when acting as such.

    2
  2. (2)

    It is likely to be misleading for a firm that is not authorised by the FCA or PRA2 to state or imply that it is so authorised. It is also likely to be misleading for a firm to state or imply that a client will have recourse to the Financial Ombudsman Service or the FSCS where this is not the case.

    2
  3. (3)

    [deleted]2

    2
GEN 4.5.6AG

2As well as potentially breaching the requirements in this section, misleading statements by a firm may involve a breach of Principle 7 (Communications with clients) or section Part 7 (Offences relating to financial services) of the Financial Services Act 2012, as well as giving rise to private law actions for misrepresentation.