MCOB 3.4 Purpose
- (1)
Section 21(1) of the Act (Restriction on financial promotion) imposes a restriction on the communication of financial promotions (qualifying credit promotions in MCOB) by unauthorised persons. A person must not, in the course of business, communicate a qualifying credit promotion unless:
- (a)
he is an authorised person; or
- (b)
the content of the qualifying credit promotion is approved by an authorised person.
- (a)
- (2)
However, the Financial Promotion Order exempts from the restriction created by section 21(1) of the Act certain types of financial promotions (qualifying credit promotions in MCOB).
- (1)
The purpose of this chapter is to provide rules and guidance for a firm which wishes to communicate or approve a qualifying credit promotion. MCOB 3.5.2 G (Application: what? Exemptions) provides a guide to the topics covered in this chapter.
- (2)
This chapter amplifies, for activities within its scope:
- (a)
Principle 6 (Customers' interests) which requires a firm to pay due regard to the interests of its customers and treat them fairly; and
- (b)
Principle 7 (Communications with clients) which requires a firm to pay due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading.
- (a)