MCOB 3A.4 Qualifying credit financial promotions

Real time qualifying credit promotions

MCOB 3A.4.1RRP

1A firm must ensure that an individual who makes a real time financial promotion of qualifying credit on the firm's behalf:

  1. (1)

    makes the purpose(s) of the financial promotion clear at the initial point of communication, and identifies themself and the firm which they represent;

  2. (2)

    if the time and method of communication were not previously agreed by the recipient:

    1. (a)

      checks that the recipient wishes them to proceed;

    2. (b)

      terminates the communication if the recipient does not wish them to proceed (but may ask for another appointment);

    3. (c)

      recognises and respects, promptly, the right of the recipient to:

      1. (i)

        end the communication at any time;

      2. (ii)

        refuse any request for another appointment;

  3. (3)

    gives any person with whom they arrange an appointment a contact point;

  4. (4)

    does not communicate with a person:

    1. (a)

      at an unsocial hour, unless the person has previously agreed to such a communication;

    2. (b)

      on an unlisted telephone number, unless the person has previously agreed to such calls on that number.

MCOB 3A.4.2GRP

In MCOB 3A.4.1R (4)(a) an unsocial hour usually means on a Sunday or before 9am or after 9pm on any other day. It could also mean other days of the week or other times if the firm knows that a particular customer would not wish to be called on that day or at that time for reasons of, for example, religious faith or night shift working.

MCOB 3A.4.3GRP

The requirements of MCOB 3A.4.1 R and MCOB 3A.4.2 G do not prevent, for example, a telephone call centre which has received a call from a customer at an hour generally regarded as unsocial, either responding to that call or asking during the call if the customer would like details of other qualifying credit.

Approval of qualifying credit promotions

MCOB 3A.4.4GRP

Most of the rules in this chapter apply when a firm approves a financial promotion of qualifying credit in the same way as when a firm communicates a financial promotion of qualifying credit itself. Therefore, a firm has a similar responsibility for a financial promotion of qualifying credit that it approves, as for one that it communicates.

No approval of real time qualifying credit promotions

MCOB 3A.4.5RRP

A firm must not approve a financial promotion of qualifying credit made in the course of a personal visit, telephone conversation or other interactive dialogue.

Approval of qualifying credit promotions when not all the rules apply

MCOB 3A.4.6RRP

If a firm approves a financial promotion of qualifying credit in circumstances in which one or more of the rules in this chapter are expressly disapplied, the approval must be given on terms that it is limited to those circumstances.

MCOB 3A.4.7GRP

If an approval is limited under MCOB 3A.4.6 R, and an unauthorised person communicates the financial promotion 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.

Financial promotions for the business of overseas persons

MCOB 3A.4.8RRP

A firm must not communicate or approve a financial promotion which relates to qualifying credit provided by an overseas person, unless:

  1. (1)

    the financial promotion of qualifying credit makes clear which firm has approved or communicated it and, where relevant, explains:

    1. (a)

      that the rules made under the Act for the protection of customers do not apply;

    2. (b)

      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

    3. (c)

      if the communicator wishes, the protection or compensation available under another system of regulation; and

  2. (2)

    the firm has taken reasonable steps to satisfy itself that the overseas person will deal with customers in the United Kingdom in an honest and reliable way.