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Status: You are viewing the version of the handbook as on 2016-02-03.

MCOB 3.7 2Unsolicited real time financial promotions of qualifying credit, a home reversion plan or a regulated sale and rent back agreement3

Meaning of 'solicited' and 'unsolicited' real time financial promotion22

MCOB 3.7.1R
  1. (1)

    An unsolicited real time financial promotion2 is a real time financial promotion2 which is not solicited as described in (2).

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  2. (2)

    A solicited real time financial promotion2 is a real time financial promotion2 which is solicited, that is, it is made in the course of a personal visit, telephone call or other interactive dialogue if that call, visit or dialogue:

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    1. (a)

      was initiated by the recipient of the financial promotion2; or

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    2. (b)

      takes place in response to an express request from the recipient of the financial promotion2;

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    and it is clear from all the circumstances when the call, visit or dialogue is initiated or requested that during the course of the visit, call or dialogue a financial promotion2 would be made.

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  3. (3)

    In (2), a person is not to be treated as expressly requesting a call, visit or dialogue:

    1. (a)

      because he omits to indicate that he does not wish to receive any or any further visits or calls or to engage in any or any further dialogue;

    2. (b)

      because he agrees to standard terms that state that such visits, calls or dialogues will take place unless he has signified clearly that, in addition to agreeing to the terms, he is willing for them to take place.

  4. (4)

    If a financial promotion2 is solicited by a person ('R') it is treated as also having been solicited by any other person to whom it is made at the same time as R if that other person is a close relative of R or is expected to enter into a home reversion plan, a regulated sale and rent back agreement3 or 2any contract for qualifying credit jointly with R.

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MCOB 3.7.2G

MCOB 3.7.1 R is based on article 8 of the Financial Promotion Order1. Guidance on whether a real time financial promotion2 is solicited is contained in PERG 8.10.8G1 (Solicited v unsolicited real-time promotions). PERG 8.10.11G1 to PERG 8.10.14G1 also gives guidance on who will be considered the 'recipient' of a communication.

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Prohibition on unsolicited real time 2financial2 promotions to customers

MCOB 3.7.3R

A firm must not make an unsolicited real time financial promotion of qualifying credit,3 a home reversion plan or a regulated sale and rent back agreement32 unless the customer has an established existing customer relationship with the firm and the relationship is such that the customer envisages receiving such financial promotions.2

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MCOB 3.7.4G
  1. (1)

    Firms are reminded of the exemptions in MCOB 3.2.5 R (Application: what? exemptions). MCOB 3.7.3 R does not prohibit an exempt real time financial promotion2.

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  2. (2)

    MCOB 3.2.5 R(2) creates an exemption for financial promotions2 that contain only very limited information about the firm (such as its name or contact details). The limited nature of this exemption means that a firm is unlikely to be able to use it to induce a customer to approach the firm and turn any subsequent communication by the firm into a solicited real time financial promotion2.

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