GEN 4.5 Statements about authorisation and regulation by the FSA
Application
1This section applies to a firm:
- (1)
communicating with a customer; or
- (2)
communicating or approving a financial promotion other than:
- (a)
a financial promotion that would benefit from an exemption in the Financial Promotion Order if it were communicated by an unauthorised person;
- (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).
- (a)
GEN 4.5.1 R (1) does not apply to a firm when communicating with an eligible counterparty. However, misleading statements by a firm in such a communication may involve a breach of Principle 7 (Communications with clients) or section 397 (Misleading statements and practices) of the Act, as well as giving rise to private law actions for misrepresentation.
The duty
SUP 13A Annex 1 provides guidance on the application of the Handbook to an incoming EEA firm.
- (1)
Neither an incoming EEA firm nor an incoming Treaty firm is authorised by the FSA when acting as such.
- (2)
It is likely to be misleading for a firm that is not authorised by the FSA 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.
- (3)
As 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 397 (Misleading statements and practices) of the Act, as well as giving rise to private law actions for misrepresentation.