GEN 4

Statutory status disclosure

GEN 4.1

Application and purpose

Who? What?

GEN 4.1.1

See Notes

handbook-rule

This chapter applies to every firm and with respect to every regulated activity, except that:

  1. (1) for an incoming ECA provider, this chapter does not apply when the firm is acting as such;
  2. (2) for an incoming EEA firm which has permission only for cross-border services and which does not carry on regulated activities in the United Kingdom, this chapter does not apply;
  3. (3) for an incoming firm not falling under (1) or (2), this chapter does not apply to the extent that the firm is subject to equivalent rules imposed by its Home State; and
  4. (4) for a UCITS qualifier, this chapter does not apply.

Where?

GEN 4.1.2

See Notes

handbook-rule
GEN 4.3 (Letter disclosure) applies in relation to activities carried on from an establishment maintained by the firm (or by its appointed representative) in the United Kingdom, subject to GEN 4.3.4 R (Exception: insurers).

GEN 4.1.3

See Notes

handbook-rule
GEN 4.4 (Business for private customers from non-UK offices) applies in connection with a regulated activity carried on from an establishment of the firm (or its appointed representative) that is not in the United Kingdom.

GEN 4.2

Purpose

GEN 4.2.1

See Notes

handbook-guidance
The purpose of this chapter is to amplify Principle 7 (Communications with clients), which requires a firm to pay due regard to the information needs of its clients. This chapter requires the provision of appropriate minimum information about the identity of a firm's regulator in a way which is as consistent as practicable across the whole range of activities regulated by the FSA This assists in the achievement of the regulatory objectives of consumer protection, public awareness and market confidence.

GEN 4.2.2

See Notes

handbook-guidance

There are other pre-contract information requirements outside this chapter, including:

  1. (1) for financial promotions, in COB 3 (Financial promotion)
  2. (2) for designated investment business, in COB 4.2 (Terms of business and client agreements with customers), COB 4.3 (Disclosing information about services, fees and commission - packaged products), COB 5.5 (Information about the firm), COB 6.1 to COB 6.5 (Product disclosure) and CASS (Client assets);
  3. (3) for non-investment insurance contracts, in ICOB 4 (Advising and selling standards); and ICOB 5 (Product disclosure);
  4. (4) for electronic commerce activities by outgoing or domestic ECA providers, in ECO 2 (Outgoing ECA providers) and ECO 3 (Domestic (and non-EEA) ECA providers); and
  5. (5) for regulated mortgage contracts in MCOB 4.4 (Initial disclosure requirements), MCOB 5.6 (Content of illustrations) and MCOB 6.4 (Content of the offer document); and
  6. (6) . for regulated lifetime mortgage contracts, in MCOB 8.4 (Initial disclosure requirements), MCOB 9.4 (Content of illustrations) and MCOB 9.5 (Disclosure at the offer stage for lifetime mortgages).

GEN 4.3

Letter disclosure

Disclosure in letters to private customers

GEN 4.3.1

See Notes

handbook-rule
A firm must take reasonable care to ensure that every letter (or electronic equivalent) which it or its employees send to a private customer, with a view to or in connection with the firm carrying on a regulated activity, includes the disclosure in GEN 4 Annex 1.

GEN 4.3.2

See Notes

handbook-guidance
For a UK domestic firm, the required disclosure in GEN 4 Annex 1 is "Authorised and regulated by the Financial Services Authority".

GEN 4.3.3

See Notes

handbook-guidance
  1. (1) GEN 4.3.1 R (Disclosure in letters to private customers) covers letters delivered by hand, sent by post and sent by fax and also electronic mail, but not text messages, account statements, business cards or compliment slips (used as such).
  2. (2) GEN 4.3.1 R (Disclosure in letters to private customers) applies in relation to letters sent by any of the firm's employees, which includes its appointed representatives and their employees.
  3. (3) Firms are likely to find it convenient to include the required disclosure in their letterhead.

Exception: insurers

GEN 4.3.4

See Notes

handbook-rule

GEN 4.3.1 R (Disclosure in letters to private customers) does not apply in relation to:

  1. (1) general insurance business if:
    1. (a) the State of the risk is an EEA State other than the United Kingdom; or
    2. (b) the State of the risk is outside the EEA and the client is not in the United Kingdom when the contract of insurance is entered into; or
  2. (2) long-term insurance business if:
    1. (a) the client is habitually resident in an EEA State other than the United Kingdom; or
    2. (b) the client is habitually resident outside the EEA and is not present in the United Kingdom when the contract of insurance is entered into.

Exception: authorised professional firms

GEN 4.3.5

See Notes

handbook-rule
For an authorised professional firm, GEN 4.3.1 R (Disclosure in letters to private customers) does not apply with respect to its non-mainstream regulated activities.

GEN 4.4

Business for private customers from non-UK offices

GEN 4.4.1

See Notes

handbook-rule
  1. (1) If, in any communication:
    1. (a) made to a private customer or, in the case of a communication relating to non-investment insurance contracts, a retail customer,
    2. (b) in connection with a regulated activity carried on from an establishment of the firm (or its appointed representative) that is not in the United Kingdom;
  2. the firm indicates that it is an authorised person, it must also, where relevant, and with equal prominence, give the information in (2) in writing.
  3. (2) The information required is that in some or all respects the regulatory system applying will be different from that of the United Kingdom. The firm may also indicate the protections and complaints or compensation arrangements available under another relevant system of regulation.
  4. (3) A firm need not provide the information required by (1) if it has already provided it in writing to the private customer to whom the communication is made.

GEN 4.4.2

See Notes

handbook-guidance
ICOB 4.2.19 R contains provisions relating to communications by insurance intermediaries from outside the United Kingdom in connection with non-investment insurance contracts with or for a retail customer. The definition of insurance intermediary includes an insurer when the insurer is carrying on insurance mediation activities.

GEN 4 Annex 1

Statutory status disclosure

See Notes

handbook-rule