ICOB 3

Financial
promotion

ICOB 3.1

Application: general

ICOB 3.1.1

See Notes

handbook-guidance
  1. (1) ICOB 3.2.1 R states that this chapter applies generally to firms in relation to all non-investment financial promotions. But, this wide application is cut back by ICOB 3.3(Application: what?) and ICOB 3.4(Application: where?) which limit the application of this chapter for:
    1. (a) non-investment financial promotions which fall within the scope of the exemptions in the Financial Promotion Order or the additional exemptions set out in ICOB 3.3.6 R; and
    2. (b) non-investment financial promotions to persons outside the United Kingdom.
  2. (2) ICOB 3.1.2 G contains a table summarising some of the exemptions in the Financial Promotion Order that are likely to be of particular interest to firms. A firm which communicates or approves only financial promotions that fall within an exemption need not concern itself with ICOB 3.

ICOB 3.1.2

See Notes

handbook-guidance

Financial Promotion Order exemptions.

ICOB 3.1.3

See Notes

handbook-guidance
A communication may contain both a non-investment financial promotion and one or more of a financial promotion and a qualifying credit promotion, for example, a leaflet from a firm which describes the range of insurance, savings and mortgage products it provides. In such cases, ICOB 3, COB 3 and MCOB 3 will all be relevant.

ICOB 3.2

Application: who?

ICOB 3.2.1

See Notes

handbook-rule
This chapter applies to every firm which communicates or approves a non-investment financial promotion.

Appointed representatives

ICOB 3.2.2

See Notes

handbook-guidance
Under section 39(3) of the Act, a firm is responsible for financial promotions communicated by its appointed representatives when acting as such (see ICOB 1.6 (Appointed representatives)).

Nationals of other EEA States

ICOB 3.2.3

See Notes

handbook-guidance
A national of an EEA State (other than the United Kingdom) wishing to take advantage of the exemption in article 36 of the Financial Promotion Order in relation to any controlled activity lawfully carried on by him in that State, should act in conformity with the rules in this chapter.

Authorised professional firms

ICOB 3.2.4

See Notes

handbook-rule
  1. (1) ICOB 3 does not apply to an authorised professional firm in relation to the communication of a non-investment financial promotion if the following conditions are satisfied:
    1. (a) the firm's main business is the practice of its profession (see IPRU(INV) 2.1.2R(3));
    2. (b) the non-investment financial promotion is made for the purposes of and incidental to the promotion or provision by the firm of:
      1. (i) its professional services; or
      2. (ii) its non-mainstream regulated activities (see PROF 5.2); and
    3. (c) the non-investment financial promotion is not communicated on behalf of another person who would not be able lawfully to communicate the non-investment financial promotion if he were acting in the course of business.
  2. (2) In (1)(b)(i), "professional services" means services:
    1. (a) which do not constitute a regulated activity; and
    2. (b) the provision of which is supervised and regulated by a designated professional body.

ICOB 3.2.5

See Notes

handbook-guidance
Authorised professional firms are reminded that, in circumstances in which ICOB 3 does not apply to the firm, ICOB 2.2.3 R(Clear, fair and not misleading communication) may apply.

ICOB 3.3

Application: what?

What do "communicate" and "non-investment financial promotion" mean?

ICOB 3.3.1

See Notes

handbook-guidance

The rules in this chapter adopt various concepts from the restriction on financial promotion by unauthorised persons in section 21(1) of the Act (Restrictions on financial promotion). Guidance on that restriction is contained in PERG 8 (Financial promotion and related activities) and that guidance will be relevant to interpreting these rules. In particular, guidance on the meaning of:

  1. (1) "communicate" is in PERG 8.6 (Communicate);
  2. (2) "invitation or inducement" and "engage in investment activity" (two elements which, with "communicate", make up the definition of "financial promotion") are in PERG 8.4 (Invitation and inducement) and PERG 8.7 (Engage in investment activity).

Definition of "non-investment financial promotion".

ICOB 3.3.2

See Notes

handbook-guidance

Media of communication

ICOB 3.3.3

See Notes

handbook-guidance
  1. (1) There is no restriction on the media of communication to which this chapter applies. It applies to a non-investment financial promotion communicated by any means, including by way of printed advertising, radio and television broadcast, e-mail, the Internet and electronic media such as digital and other forms of interactive television and media. Both solicited and unsolicited communications are covered.
  2. (2) Financial promotions may be communicated, for example, by means of:
    1. (a) product brochures;
    2. (b) general advertising in magazines, newspapers, radio and television programmes and websites;
    3. (c) mailshots (whether distributed by post, fax, e-mail or other media);
    4. (d) written correspondence;
    5. (e) sales aids which themselves constitute a financial promotion; and
    6. (f) other publications, which may contain non-personal recommendations as to the acquisition, retention or disposal of non-investment insurance contracts.

ICOB 3.3.4

See Notes

handbook-guidance
Guidance on the use of the Internet for communicating non-investment financial promotions is in ICOB 3.9 (The Internet and other electronic media) and PERG 8.22 (The Internet).

Exemptions

ICOB 3.3.5

See Notes

handbook-rule
This chapter does not apply to a firm in relation to a non-investment financial promotion of a kind listed in ICOB 3.3.6 R.

ICOB 3.3.6

See Notes

handbook-rule

Exemptions

This table belongs to ICOB 3.3.5 R.

Combination of exemptions

ICOB 3.3.7

See Notes

handbook-rule
A firm may rely on more than one exemption (and also on ICOB 3.4.1 R (Territorial scope)) in relation to the same non-investment financial promotion.

Guidance on the exemptions

ICOB 3.3.8

See Notes

handbook-guidance
  1. (1) Under ICOB 3.3.6 R(1), a non-investment financial promotion which is communicated only to a commercial customer is exempt. See ICOB 3.6.3 R and ICOB 3.6.4 R which amplify this exemption. A firm will need to take particular note of the conditions in ICOB 3.6.4 R when designing non-investment financial promotions for trade publications that may also be available to a retail customer.
  2. (2) ICOB 3.3.6 R(4) reflects the exemption in article 28 of the Financial Promotion Order (one-off non-real time communications and solicited real time communications) but goes further, exempting all such non-investment financial promotions. It exempts, among other things, correspondence which is specifically written for a recipient, whether hard copy or e-mail. A firm should note, however, that such correspondence will, if personal recommendations are made, be subject to other obligations such as ICOB 4.3 and ICOB 4.4. It does not exempt non-investment financial promotions communicated in the form of mass mailshots, which may appear to be items of personalised correspondence but which in fact comprise the same, or virtually the same, material sent to a number of recipients, without tailoring the material to the circumstances of each recipient. Such mailshots must meet the requirements of ICOB 3. PERG 8.14.3G (One-off financial promotions (articles 28 and 28A)) provides further guidance on the scope of the exemption in article 28.
  3. (3) ICOB 3.3.6 R(5)(e), (f ) and (g) exempt a non-investment financial promotion made by a firm which refers only to its activities in general terms in image advertising. Acceptable examples include 'general insurance' or 'life and general insurance business'. In addition a firm or its appointed representative may include its name, address and telephone number in accordance with ICOB 3.3.6 R(5)(a) and (d). PERG 8.4.20G (Image advertising) provides guidance on when image advertising may involve a financial promotion.
  4. (4) A non-investment financial promotion included in a newspaper, magazine or periodical which is printed and published overseas, but which may be brought into the United Kingdom and made available to persons in the United Kingdom, will be exempt provided that the non-investment financial promotion is not communicated to persons inside the United Kingdom (see ICOB 3.4 and PERG 8.12.2G (Financial promotions to overseas recipients (article 12)).

Other Handbook rules relevant to financial promotions

ICOB 3.3.9

See Notes

handbook-guidance
  1. (1) A firm is reminded that non-investment financial promotions (including those which are exempt) may be subject to more general rules including Principle 7 (Communications with clients), SYSC 3 (Systems and controls) ICOB 2.2.3 R (Clear, fair and not misleading communication) and ICOB 5 (Product disclosure).
  2. (2) A firm is reminded that, although ICOB 3 makes no specific rules relating to the content of a non-investment financial promotion, the disclosure requirements in ICOB 4 and ICOB 5 may apply.
  3. (3) A firm is reminded that if, in the course of making a non-investment financial promotion of any kind, it gives a personal recommendation to a customer about the suitability of a non-investment insurance contract for that individual, the firm is subject to the relevant rules on advising and selling in ICOB 4 (Advising and selling standards).

ICOB 3.4

Application: where?

Territorial scope

ICOB 3.4.1

See Notes

handbook-rule

This chapter applies to a firm only in relation to:

  1. (1) the communication of a non-investment financial promotion to a person inside the United Kingdom; and
  2. (2) the approval of a non-investment financial promotion for communication to a person inside the United Kingdom;
subject to ICOB 3.4.3 R (Exceptions to territorial scope).

ICOB 3.4.2

See Notes

handbook-guidance
  1. (1) The application under ICOB 3.4.1 R is relevant both when a firm communicates a non-investment financial promotion itself and when a firm approves a non-investment financial promotion for communication by others. But see also ICOB 3.4.3 R.
  2. (2) The exemptions in ICOB 3.3.6 R (Application: what?; Exemptions) also incorporate some territorial elements. In particular, the exemption for financial promotions originating outside the United Kingdom (section 21(3) of the Act (Restrictions on financial promotion)) (see ICOB 3.3.6 R(2)) and PERG 8.12.2G (Financial promotions to overseas recipients (article 12)), the exemptions for overseas communicators (see ICOB 3.3.6 R(3)) and the exemption for incoming electronic commerce communications (see PERG 8.12.38G article 20B)).
  3. (3) In the context of the provision of an electronic commerce activity to an EEA ECA recipient, the scope of ICOB 3 is extended by ECO 2.2.3 R (Financial promotion). This means that ICOB 3 will apply for communications to EEA ECA recipients.

Exceptions to territorial scope

ICOB 3.4.3

See Notes

handbook-rule

The following parts of this chapter apply without any territorial limitation if a firm approves a non-investment financial promotion:

  1. (1) ICOB 3.1 to ICOB 3.6 (Application, Purpose and General); and
  2. (2) ICOB 3.8.1 R (1) (Non-investment financial promotions: clear, fair and not misleading: comparisons).

Meaning of "communicated to a person inside or outside the United Kingdom"

ICOB 3.4.4

See Notes

handbook-rule

For the purposes of this chapter:

  1. (1) a non-investment financial promotion is communicated to a person outside the United Kingdom if it is:
    1. (a) made to a person who receives it outside the United Kingdom; or
    2. (b) directed only at persons outside the United Kingdom; and
  2. (2) a non-investment financial promotion is communicated to a person inside the United Kingdom if it is communicated to a person other than as described in (1);
and see ICOB 3.4.5 R and ICOB 3.6.3 R, which amplify this rule.

Meaning of "directed only at persons outside the United Kingdom"

ICOB 3.4.5

See Notes

handbook-rule
  1. (1) If the conditions set out in 4(a), (b), (c) and (d) are met, a non-investment financial promotion directed from a place inside the United Kingdom will be regarded as directed only at persons outside the United Kingdom.
  2. (2) If the conditions set out in 4(c) and (d) are met a non-investment financial promotion directed from a place outside the United Kingdom will be regarded as directed only at persons outside the United Kingdom.
  3. (3) In any other case where one or more of the conditions in 4(a) to (e) is met, that fact will be taken into account in determining whether a non-investment financial promotion is directed only at persons outside the United Kingdom (but a non-investment financial promotion may still be regarded as directed only at persons outside the United Kingdom even if none of these conditions is met).
  4. (4) The conditions are that:
    1. (a) the non-investment financial promotion is accompanied by an indication that it is directed only at persons outside the United Kingdom;
    2. (b) the non-investment financial promotion is accompanied by an indication that it must not be acted upon by persons in the United Kingdom;
    3. (c) the non-investment financial promotion is not referred to in, or directly accessible from, any other non-investment financial promotion which is made to a person or directed at persons in the United Kingdom by or on behalf of the same person;
    4. (d) there are in place proper systems and procedures to prevent recipients in the United Kingdom (other than those to whom the non-investment financial promotion might otherwise lawfully have been made) engaging in the investment activity to which the non-investment financial promotion relates with the person directing the non-investment financial promotion, a close relative of his or a member of the same group; and
    5. (e) the non-investment financial promotion is included in:
      1. (i) a website, newspaper, journal, magazine or periodical publication which is principally accessed in or intended for a market outside the United Kingdom;
      2. (ii) a radio or television broadcast or teletext service transmitted principally for reception outside the United Kingdom.

ICOB 3.5

Purpose

ICOB 3.5.1

See Notes

handbook-guidance
  1. (1) Section 21(1) of the Act (Restrictions on financial promotion) imposes a restriction on the communication of financial promotions (non-investment financial promotions in ICOB) by unauthorised persons. A person must not, in the course of business, communicate a non-investment financial promotion unless:
    1. (a) he is an authorised person; or
    2. (b) the content of the non-investment financial promotion is approved by an authorised person.
  2. (2) However, the Financial Promotion Order exempts from the restriction created by section 21(1) of the Act certain types of financial promotion.

ICOB 3.5.2

See Notes

handbook-guidance
  1. (1) The purpose of this chapter is to provide rules and guidance for a firm that wishes to communicate or approve a non-investment financial promotion. PERG 8 (Financial promotion and related activities) provides further detailed guidance on the financial promotion regime under section 21 of the Act (Financial promotion) which will be relevant in interpreting these rules.
  2. (2) This chapter amplifies, for activities within its scope:
    1. (a) Principle 6 (Customers' interests) which requires a firm to pay due regard to the interests of its customers and treat them fairly; and
    2. (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.

ICOB 3.6

General

Other regulations and guidelines

ICOB 3.6.1

See Notes

handbook-guidance

A firm communicating a non-investment financial promotion may also be subject to other regulations and guidelines, outside the remit of the FSA, such as:

  1. (1) the codes issued from time to time by the Advertising Standards Authority;
  2. (2) regulations from any overseas regulator (where relevant) if the firm intends to market from the United Kingdom into any other country; and
  3. (3) the Privacy and Electronic Communication (EC Directive) Regulations 2003 (SI 2003/2426).

Non-investment financial promotions

ICOB 3.6.2

See Notes

handbook-rule
  1. (1) A non-investment financial promotion includes a financial promotion for a non-investment insurance contract made by letter or e-mail or contained in a newspaper, journal, magazine, other periodical publication, website, television or radio programme, or teletext service.
  2. (2) The following are to be regarded as indications that a financial promotion for a non-investment insurance contract is a non-investment financial promotion rather than a real time financial promotion:
    1. (a) the financial promotion is communicated to more than one person in identical terms (save for details of the recipient's identity);
    2. (b) the financial promotion is communicated by way of a system which in the normal course constitutes or creates a record of the communication which is available to the recipient to refer to at a later time; and
    3. (c) the financial promotion is communicated by way of a system which in the normal course does not enable or require the recipient to respond immediately to it.

Meaning of "made", "directed at" and "recipient" in this chapter

ICOB 3.6.3

See Notes

handbook-rule

In accordance with article 6 of the Financial Promotion Order (Interpretation: communications) any reference in this chapter to:

  1. (1) a communication being made to another person is a reference to a communication being addressed in legible form to a particular person or persons (for example, where it is contained in a letter);
  2. (2) a communication being directed at persons is a reference to a communication being addressed to persons generally (for example where it is contained in a television broadcast or website); and
  3. (3) a recipient of a communication is the person to whom the communication is made or, in the case of a financial promotion which is directed at persons generally, any person who reads or hears the communication.

When is a financial promotion "directed only at" certain persons?

ICOB 3.6.4

See Notes

handbook-rule
  1. (1) This rule applies for the purposes of determining whether a communication is directed only at commercial customers under ICOB 3.3.6 R(1).
  2. (2) If all the conditions set out in (4) are met, a communication is to be regarded as directed as in (1).
  3. (3) In any other case in which one or more of those conditions is met, that fact is to be taken into account in determining whether the communication is directed as in (1) (but a communication may still be regarded as so directed even if none of the conditions in (4) are met).
  4. (4) The conditions are that:
    1. (a) the communication includes an indication of the description of persons to whom it is directed and an indication of the fact that the contract to which it relates is available only to such persons;
    2. (b) the communication includes an indication that persons of any other description should not rely upon it; and
    3. (c) there are in place proper systems and procedures to prevent recipients other than persons to whom it is directed entering into the contract to which the communication relates with the person directing the communication, a close relative of his or a member of the same group.

ICOB 3.7

Confirmation of compliance

Confirmation of compliance

ICOB 3.7.1

See Notes

handbook-rule
  1. (1) Before a firm communicates or approves a non-investment financial promotion, it must confirm that the non-investment financial promotion complies with the rules in this chapter.
  2. (2) A firm must arrange for the confirmation exercise in (1) to be carried out by an individual or individuals with appropriate expertise.

ICOB 3.7.2

See Notes

handbook-guidance
  1. (1) In ICOB 3.7.1 R(2) 'appropriate expertise' will vary depending on the complexity of the financial promotion and the non-investment insurance contract to which it relates. The individuals engaged by a firm to confirm the compliance of its financial promotions with this chapter may have different levels of expertise and therefore a different level of authority for confirmation depending on the type of financial promotion and the non-investment insurance contract involved.
  2. (2) A firm may arrange for a third party with appropriate expertise to carry out the confirmation exercise on the firm's behalf, but the responsibility for the non-investment financial promotion remains with the firm.

Withdrawing confirmation

ICOB 3.7.3

See Notes

handbook-rule

If, at any time after it has completed a confirmation exercise in ICOB 3.7.1 R(1) a firm becomes aware that a non-investment financial promotion no longer complies with the rules in this chapter, it must ensure that the non-investment financial promotion is withdrawn as soon as reasonably practicable by:

  1. (1) ceasing to communicate it;
  2. (2) withdrawing its approval (if applicable); and
  3. (3) notifying any person that the firm knows to be relying on its approval (if applicable) or confirmation (under ICOB 3.7.5 R).

ICOB 3.7.4

See Notes

handbook-guidance
  1. (1) ICOB 3.7.3 R is of particular importance to a non-investment financial promotion, such as a product brochure, that a firm uses over a period of time. It has little application to a non-investment financial promotion which is of its nature ephemeral, for example, a mobile phone text message. Further, a non-investment financial promotion which clearly speaks as at a particular date will not cease to comply with the rules in this chapter merely because the passage of time has rendered it out-of-date.
  2. (2) For compliance with ICOB 3.7.3 R the FSA will expect a firm to monitor its relevant non-investment financial promotions as part of the firm's routine compliance monitoring procedures. A firm may find it helpful to designate a relevant non-investment financial promotion with a 'review date', a date at which the non-investment financial promotion should be checked once more against the rules of this chapter. If it is found no longer to meet these requirements it should be withdrawn as soon as reasonably practicable.
  3. (3) If at any time a firm becomes aware that a retail customer may have been misled by a non-investment financial promotion it should consider whether the retail customer who has responded to the non-investment financial promotion should be contacted with a view to explaining the position and offering any appropriate form of redress to those who have suffered financial loss.

Communicating a financial promotion where another firm has confirmed compliance

ICOB 3.7.5

See Notes

handbook-rule

A firm will not contravene any of the rules in this chapter in the circumstances where it (firm "A") communicates a non-investment financial promotion which has been produced by another person provided that:

  1. (1) A takes reasonable care to establish that another firm (firm "B") has already confirmed the compliance of the non-investment financial promotion in accordance with ICOB 3.7.1 R;
  2. (2) A takes reasonable care to establish that A communicates the non-investment financial promotion only to recipients of the type for whom it was intended at the time B carried out the confirmation exercise; and
  3. (3) so far as A is, or ought to be, aware:
    1. (a) the non-investment financial promotion has not ceased to be clear, fair and not misleading since that time; and
    2. (b) B has not withdrawn the non-investment financial promotion.

ICOB 3.8

Form and content of non-investment financial promotions

Clear, fair and not misleading: comparisons and restrictions on the use of the key facts logo

ICOB 3.8.1

See Notes

handbook-rule
  1. (1) A firm must be able to show that it has taken reasonable steps to ensure that a non-investment financial promotion is clear, fair and not misleading.
  2. (2) A non-investment financial promotion which includes a comparison or contrast must:
    1. (a) compare contracts meeting the same needs or which are intended for the same purpose;
    2. (b) objectively compare one or more material, relevant, verifiable and representative features of those contracts, which may include price;
    3. (c) not create confusion in the marketplace between the firm itself (or the person whose non-investment financial promotion it approves) and a competitor or between the firm's trademarks, trade names, other distinguishing marks, contracts or services (or those of the person whose non-investment financial promotion it approves) and those of a competitor;
    4. (d) not discredit or denigrate the trademarks, trade names, other distinguishing marks, contracts, services, activities or circumstances of a competitor;
    5. (e) not take unfair advantage of the reputation of a trademark, trade name or other distinguishing marks of a competitor;
    6. (f) not present contracts as imitations or replicas of contracts bearing a protected trademark or trade name; and
    7. (g) indicate in a clear and unequivocal way in any comparison referring to a special offer the date on which the offer ends or, where appropriate, that the special offer is subject to the availability of the contracts and services, and, where the special offer has not yet begun, the date of the start of the period during which the special price or other specific conditions shall apply.
  3. (3) A non-investment financial promotion must not contain the key facts logo unless it is required by a rule.

ICOB 3.8.2

See Notes

handbook-evidential-provisions
  1. (1) A firm should take reasonable steps to ensure that, for a non-investment financial promotion:
    1. (a) its promotional purpose is not in any way disguised or misrepresented;
    2. (b) any statement of fact, promise or prediction is clear, fair and not misleading and discloses any relevant assumptions;
    3. (c) any statement of opinion is honestly held and, unless consent is impracticable, given with the consent of the person concerned;
    4. (d) the facts on which any comparison or contrast is made are verified, or, alternatively, that relevant assumptions are disclosed and that the comparison or contrast is presented in a fair and balanced way, which is not misleading and includes all factors which are relevant to the comparison or contrast;
    5. (e) it does not contain any false indications, in particular as to:
      1. (i) the firm's independence;
      2. (ii) the firm's resources and scale of activities; or
      3. (iii) the scarcity of any contract;
    6. (f) the design, content or format does not disguise, obscure or diminish the significance of any statement, warning or other matter which the non-investment financial promotion is required by this chapter to contain;
    7. (g) it does not include any reference to approval by the FSA or any government body, unless such approval has been obtained in writing from the FSA or that body (see also GEN 1.2 (Referring to approval by the FSA));
    8. (h) it does not omit any matters the omission of which causes the non-investment financial promotion not to be clear, fair and not misleading; and
    9. (i) the accuracy of all material statements of fact in it can be substantiated.
  2. (2)
    1. (a) Compliance with ICOB 3.8.2 E(1) may be relied on as tending to show compliance with ICOB 3.8.1 R(1).
    2. (b) Contravention of ICOB 3.8.2 E(1) may be relied on as tending to show contravention of ICOB 3.8.1 R(1).

Guidance on clear, fair and not misleading

ICOB 3.8.3

See Notes

handbook-guidance
  1. (1) It cannot be assumed that recipients necessarily have an understanding of the contract being promoted. If a non-investment financial promotion is specially designed for a targeted collection of recipients who are reasonably believed to have particular knowledge of the contract being promoted, this fact should be made clear.
  2. (2) In relation to quotations of opinion:
    1. (a) where only part of an opinion is quoted, it should nevertheless be a fair representation; and
    2. (b) any connection between the holder of the opinion and the firm should be made clear.
  3. (3) Firms should avoid the use of small print to qualify prominent claims.
  4. (4) If a firm communicates a non-investment financial promotion which contains a quotation of premium and it is unable to give the retail customer a precise quotation it should ensure that the premium quoted is representative of the premium that would be charged for a person in a similar position to the retail customer.
  5. (5) Unless the firm is prepared to give a precise quotation, the non-investment financial promotion should be accompanied by a prominent statement making clear that the premium quoted is an estimate only and that the actual premium will depend on individual circumstances.
  6. (6) Where a non-investment financial promotion indicates or implies that a firm can:
    1. (a) reduce the premium; or
    2. (b) provide the cheapest premium; or
    3. (c) reduce a retail customer's costs;
  7. it should include, with equal prominence, a statement of the basis on which the reduction is to be achieved. The FSA will assess prominence in the context of the non-investment financial promotion as a whole. Use can be made of the positioning of text, background and text colour and type size to ensure that ICOB 3.8.1 R(1) is satisfied.
  8. (7) Where (6) applies, and there are significant limitations on any savings, these should be given equal prominence in the non-investment financial promotion to the claimed savings. For example, if the non-investment financial promotion states that a firm can achieve a premium reduction in the form of either a percentage or monetary amount, but the saving is only available if the retail customer meets certain specific criteria, the criteria should be given equal prominence and not placed in small print.
  9. (8) A firm which offers general insurance contracts, providing benefits for the customer's care in the event of the customer's disability or incapacity, should avoid using terms which state expressly or imply that the policy will be available for the customer to claim on in the long-term, that is, for any period beyond the expiry of the policy. So a general insurance contract should not be promoted as being capable of providing long-term care insurance for the customer in the long-term, and expressions such as "long-term care" and "lifetime care" should generally be avoided in relation to general insurance contracts. If a general insurance contract provides benefits over the long-term in the event of a claim being made, a firm should make clear that the long-term aspect relates only to the availability of benefits in the event of a claim, not to the duration of the policy itself.

ICOB 3.9

The Internet and other electronic media

ICOB 3.9.1

See Notes

handbook-guidance
This section contains guidance on the use of the Internet and other electronic media to communicate financial promotions. Firms are also referred to the guidance in ICOB 2.6 (Application to electronic media).

Approach and general guidance

ICOB 3.9.2

See Notes

handbook-guidance
Any material which meets the definition of a non-investment financial promotion, including any video or moving image material incorporated in any website containing a non-investment financial promotion, should comply with the rules in this chapter. See PERG 8.22 (The Internet) for further guidance on non-investment financial promotions on the Internet, including the treatment of hyperlinks and banners.

ICOB 3.9.3

See Notes

handbook-guidance
  1. (1) Before using the Internet, digital or any other form of interactive television or other electronic media to promote its services a firm should refer to legislation such as the Data Protection Act 1998 and the Computer Misuse Act 1990, as well as to this chapter.
  2. (2) When designing websites and other electronic media, firms should be aware of the difficulties that can arise when reproducing certain colours and printing certain types of text. These difficulties could cause problems with the presentation and retrieval of required information. Any non-investment financial promotion communicated by the Internet, digital or other forms of interactive television is subject to the requirements set out in ICOB 3.8 as applicable.

Specific guidance

ICOB 3.9.4

See Notes

handbook-guidance
The FSA's website http://www.fsa.gov.uk contains a wide range of information, including pages of specific relevance to customers. Firms may, if they wish, include a reference or hyperlink to the FSA's website; this will not, however, replace any requirements of ICOB 3.