Section 21(1) of the Act (Restrictions on financial promotion) prohibits an unauthorised person from communicating a financial promotion, in the course of business, unless an exemption applies or the financial promotion1 is approved by a firm.11
Most of the rules in this chapter apply when a firm approves a financial promotion of qualifying credit1 in the same way as when a firm communicates a financial promotion of qualifying credit1 itself. A firm therefore has a similar responsibility for a financial promotion of qualifying credit1 that it approves as for one that it communicates. For example, a firm which approves a non-real time financial promotion1 must:1111
A firm may also wish to approve a financial promotion of qualifying credit1 that it communicates itself. This would ensure that an unauthorised person who then also communicates it1 to another person will not contravene the restriction in section 21(1) of the Act (Restrictions on financial promotion).11
A firm which approves a promotion that is exempt under MCOB 3.2.5 R (Application: what?; exemptions) or MCOB 3.3.1 R (Application: where?) must still comply with certain rules in this chapter (see MCOB 3.2.4 R (Application: what? exemptions) and MCOB 3.3.3 R (Exceptions to territorial scope: rules without territorial limitation)).
If an approval is limited in accordance with MCOB 3.11.3 R, and an unauthorised personcommunicates the financial promotion1 to persons not covered by the approval, the unauthorised person may commit an offence under section 21(1) of the Act (Restrictions on financial promotion). A firm giving a limited approval may wish to advise the unauthorised person accordingly.1
the extent and level to which the compensation scheme will be available, or if the scheme will not be available, a statement to that effect; and
if the communicator wishes, the protection or compensation available under another system of regulation; and