Distance Marketing Checklist and E commerce Policy | Financial Promotions and Customer Communication | Mortgage Conduct of Business MCOB | Template for FCA Applications and Authorised Firms

← Return to the Table of Content for all MCOB pages

Distance Marketing Checklist

[Insert location/hyperlink to external location of this document]

[We have included a template for this document in 02_Manual_Supporting_Docs]

21.9 E-commerce

Any aspects of the company’s business activities that are defined a being e-commerce are set-up in accordance and compliant with the E-commerce Directive and any regulatory requirements and guidance as provided in FCA Handbook section CONC 2.8.

Where products and/or services are offered for sale via an e-commerce platform (website) by the company we confirm that procedures and controls exist to ensure that: –

• Our business name, geographical location, statutory status disclosure status, regulatory reference number and contact details (inc. email address) are all provided
• Our VAT number is provided (if applicable)
• Where we refer to prices, this is done so in a clear and unambiguous manner and is inclusive of all costs and tax
• Any promotional offer is clearly identified as such and any conditions that must be met to participate are clear, fair and unambiguous
• Where an order is placed, we ensure that customers are provided with: –
  • any technical steps on concluding the sale and/or contracted
  • clear information on cancelling the order/contract
  • clear steps on correcting errors
  • confirmation of order receipt without undue delays and in an electronic format
  • information relating to the filing of any completed contracts

21.9.1 E-Commerce Policy

1. Policy Statement

The company are committed to ensuring that we abide by the FCA and legal regulations applicable to our business type and activities at all times. Our E-Commerce Policy has been developed to ensure that we comply with the rules and guidelines set out in CONC 2.8 of the FCA Handbook regarding any electronic commerce activity. This policy acts as a guidance document for staff and personnel as well as a statement of intent for developing our procedures in this area.

With regards to our electronic commerce activities, the company will ensure that we provide the necessary information and disclosures to all customers about our firm and products/services and will adhere to both the FCA and The Electronic Commerce (EC Directive) Regulations 2002. Such information will be made easily accessible to all recipients of the information society services that we provide.

2. Purpose

The purpose of this policy is to provide clear guidance to our staff on the legal, regulatory and our own business objectives for electronic commerce activity and to ensure that our customers are provided with a compliant service at all times.

This policy has been developed with the CONC 2.8 requirements and The Electronic Commerce (EC Directive) Regulations 2002 rules as its foundation and our company objectives regarding electronic commerce activities have been built around these obligations.

The company uses this policy and any associated procedures in conjunction with our other regulatory compliance policies and procedures, which set out our objectives and obligations on associated areas.

3. Scope

The policy relates to all staff (meaning permanent, fixed term, and temporary staff, any third-party representatives or sub-contractors, agency workers, volunteers, interns and agents engaged with the company in the UK or overseas) within the organisation and has been created to ensure that staff deal with the area that this policy relates to in accordance with legal, regulatory, contractual and business expectations and requirements.

4. What Are Information Society Services?

Information Society Services is a term used by the FCA in relation to electronic commerce activities and is based on the definition provided under The Electronic Commerce (EC Directive) Regulations 2002. An Information Society Service is any service normally provided for remuneration, at a distance, by means of electronic equipment for the processing (including the digital compression) and storage of data at the individual request of a service recipient.

5. Objectives

The company has laid out the below objectives which it intends to meet in relation to our electronic commerce activity obligations. All staff are bound by these objectives and we will ensure that frequent and continuous reviews and audits are carried out on all electronic commerce activity initiatives to ensure that we remain compliant with any laws, directives and/or regulations.

The company will ensure that where an electronic commerce activity is carried out, we will: –

• Make at least the following information easily, directly and permanently accessible to the recipients of the information society services that we provide:
  • Our name
  • the geographic address at which we are established
  • the details of the company, including our e-mail address, which allows us to be contacted rapidly and communicated with in a direct and effective manner
  • an appropriate statutory status disclosure statement, together with a statement which explains that we are on the Financial Conduct Authority Register and include our authorisation reference number
  • [*delete if not applicable] as a professional firm/person regulated by the equivalent of a designated professional body in another EEA State, we will also provide:
    • the name of the professional body (including any designated professional body) or similar institution with which we are registered
    • the professional title and the EEA State where registration was granted
    • a reference to the applicable professional rules in the EEA State of establishment and the means to access them
    • where the company undertakes an activity that is subject to VAT, our VAT number
  • Where the company refers to price via any electronic commerce activity, we will do so clearly and unambiguously, indicating whether the price is inclusive of tax and delivery costs
  • Ensure that commercial communications which are part of, or constitute, an information society service, comply with the following conditions:
    • the commercial communication will be clearly identifiable as such
    • [*delete if not applicable] the person on whose behalf the commercial communication is made will be clearly identifiable
    • promotional offers will be clearly identifiable as such, and the conditions that must be met to qualify for them will also be easily accessible and presented clearly and unambiguously
    • [*delete if not applicable] promotional competitions or games will be clearly identifiable as such, and the conditions for participation must be easily accessible and presented clearly and unambiguously.
  • As the company are a firm regulated by the FCA and bound by The Electronic Commerce (EC Directive) Regulations 2002, we will ensure that when we send any unsolicited commercial communication by e-mail, we will make sure that it is clearly and unambiguously identifiable as an unsolicited commercial communication as soon as it is received by the recipient
  • In relation to the placement and receipt of any orders, the company will ensure that we: –
    • give an electronic commerce activity recipient at least the following information, clearly, comprehensibly and unambiguously, and prior to the order being placed by the recipient of the service:
      • the different technical steps to follow to conclude the contract
      • whether or not the concluded contract will be filed by us and whether it will be accessible
      • the technical means for identifying and correcting input errors prior to the placing of the order
      • the languages offered for the conclusion of the contract
    • will indicate any relevant codes of conduct to which we subscribe and information on how those codes can be consulted electronically
    • (when an electronic commerce activity recipient places an order through technological means) will acknowledge the receipt of the recipient’s order without undue delay and by electronic means
    • make available to the electronic commerce activity recipient appropriate, effective and accessible technical means allowing the recipient to identify and correct input errors prior to the placing of an order
  • We will provide contractual terms and conditions in a way that allows the recipient to store and reproduce them
  • In compliance with clause 15 of The Electronic Commerce (EC Directive) Regulations 2002 (Right to rescind contract), the company will ensure that a person shall be entitled to rescind the contract of any order (unless any court having jurisdiction in relation to the contract in question orders otherwise), where the person: –
    • has entered into a contract to which these Regulations apply, and
    • we have not made available the means of allowing them to identify and correct input errors in compliance with regulation 11(1)(b)

6. Website Disclosure

The company has ensured that it meets its regulatory and legal obligations under the FCA and The Electronic Commerce (EC Directive) Regulations 2002, by providing an E-commerce Activity Disclosure page on our company website which details the below information:

7. Responsibilities

The company will ensure that all staff are provided with the time, training and support to learn, understand and implement the Electronic commerce activity regulations and laws and the company’s objectives and obligations under these regulations.

Where any new electronic commerce activity information or methods are used or developed, all staff will be made aware of the changes and provided with an opportunity for feedback to ensure full understanding and compliance.

21.10 Financial Promotions & Customer Communication

The company ensures that on any financial promotions or communications with customers that are scheduled (including postal, email, e-commerce or by telephone), are to be reviewed and authorised by the Compliance Officer in all instances and a record logged of any such authorisation. The Compliance Officer is to be present during all aspects of the financial promotion creation and that those involved are aware of and understand the regulatory requirements set out in CONC 3.3 of the FCA Handbook.

The Customer Communication & Financial Promotion Checklist is used to ensure that all financial promotions and communications with customers comply with the regulatory requirements.

21.10.1 Communication & Financial Promotion Checklist

This checklist is used prior to a financial promotion or new communication format being implemented and is also used for the assessment and monitoring of continued compliance with the regulatory requirements under CONC 3.3, PERG 8.3, COBS 4.1, COBS 4.7 & MCOB (where applicable).

A checklist must be completed in all cases and signed off by the Compliance Officer prior to implementation. Where a financial promotion or communication does not meet, the standards required, it must be revised to comply with any legal and regulatory requirements prior to being used.

For the purposes of the checklist, the word “material” has been used in all cases to define the financial promotion or customer communication being assessed – this definition is all encompassing and is irrespective of type or method, including website content, email text and SMS messages.

[Insert location/hyperlink to external location of this document]

[We have included a template for this document in 06_Checklists]