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Financial Promotions & Communication Policy

1. Policy Statement

The company policy and procedures on any financial promotions or communications with customers and/or clients, have been developed and implemented following the regulatory requirements under CONC 3 and COBS 4 of the FCA Handbook.

Communication methods include postal, email, e-commerce and telephone and the Company are dedicated to ensuring that all such communications are fair, clear and not misleading. We use template documents to create our client letters, emails and financial promotions, all of which are checked by our [Compliance Officer/Nominated Person/Customer Care Team] to ensure that they meet both our business expectations and the regulatory requirements.

We utilise a Communication & Financial Promotion Checklist which enables us to monitor and audit all forms of communication, marketing and promotions for compliance with the rules and requirements.

2. Purpose

The purpose of this policy is to provide clear guidance to our staff regarding customer communication and financial promotions. This policy sets out our objectives and provides structure on how we communicate with our customers and clients.

The Company understands that it has an obligation towards existing and potential customers and clients and to provide them with a clear and fair service, which includes how we communicate with them and the content of any financial promotions, advertisements and/or marketing materials.

As technology continues to grow and change, the Company recognise that the way in which we communicate with our customers must also develop. To this end, we aim to develop new and innovative ways of providing our customers and clients with information about our products and services, to ensure that they can make informed decisions.

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. Promotional Material & Website Content

The company are committed to ensuring that all financial promotional materials, content and website text is jargon free, non-misleading and accurate and that it presents the customer with the positive and negative aspects of any product/service, to ensure that they have all the relevant facts and figures to make an informed decision.

We understand that the general public may not understand the products and/or services that we provide with the same depth of knowledge and comprehension that our staff have. As such, we are duty bound to make our materials and website content user-friendly and suitable for the market it is intended to benefit.

All promotional materials and website text are reviewed and authorised by [The Compliance Officer/Senior Management] and a record of such authorisations are retained for future reference. We use a dedicated Financial Promotion and Communication Checklist to assess all new materials and their content, which has been developed using the FCA’s handbook requirements on this compliance area.

All materials and content clearly display who we are, what we do and how we do it. We aim to achieve the below focus points with regard to all financial promotions and client communications. The Company ensures: –

  • The people designing and approving the promotions understand the rules and are fully trained
  • All promotions remain clear, fair and not misleading and are frequently reviewed against our own checklist and the FCA rules and requirements
  • We monitor promotions and keep adequate records of all authorisations, promotions sent, and reviews completed
  • We review complaints regarding promotions or website content immediately and apply lessons learned to future promotions

5. Objectives

It is our aim to comply with the rules, regulations and guidance set out under COBS 4.2 and CONC 3.3 of the FCA Handbook and to ensure that all financial promotions, website content and communication materials are clear, fair, and not misleading.

We perform due diligence and strict compliance checks to ensure that all financial promotions are clearly identifiable as such; are accurate and balanced and never emphasise any potential benefits of a product or service without also giving a fair and prominent indication of any relevant and/or associated risks.

We approach all promotional material developments with a target audience in mind and ensure that the content and information provided is suitable and sufficient for the intended group. This includes checking language and presentation to ensure it can be understood by the group to which it is directed, or by which it is likely to be received.

The company has laid out the below objectives which it intends to meet in relation to all forms of client/customer communication and financial promotions. the company will ensure that: –

  • All forms of communication, both electronic and paper, are clear, fair and not misleading, which includes ensuring that: –
    • We use plain and intelligible language
    • Content is easily legible and where applicable, clearly audible
    • Content specifies the name of the person making the communication or who the communication is on behalf of.
  • We do not suggest or state that credit or a financial agreement is available regardless of the customers’ financial status or circumstances
  • The material does not disguise, omit, diminish or obscure important information, statements or warnings
  • All information is accurate and does not emphasise any potential benefits of relevant business or a relevant investment without also giving a fair and prominent indication of any relevant risks
  • All communication and promotions include the below information: –
    • the company’s logo
    • the company’s full trading name
    • the company’s website URL or full trading address
  • All communications and/or financial promotions are fit for purpose, aimed at those who it is relevant to and can be sufficiently understood by those receiving it
  • We never describe a feature of a product or service as “guaranteed”, “protected” or “secure”, or use a similar term unless:
    • that term is capable of being a fair, clear and not misleading description of it
    • we communicate all the information necessary, and presents that information with sufficient clarity and prominence, to make the use of that term fair, clear and not misleading
  • Where:
  • there are two or more customers or prospective customers in relation to the same home finance transaction
  • a rule in MCOB requires the provision of information to such customers
  • the customers have different addresses

the company will always send correspondence and/or information to each address. Where multiple customers share the same address, we will only send a single copy of the information addressed to each of the customers.

  • Content and/or layout does not disguise, diminish or obscure important information, statements or warnings
  • [DELETE IF NOT OFFERING HIGH-COST, SHORT-TERM CREDIT] All communications and financial promotions contain the sentence “Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk”

The company confirms that where any of its financial promotions or communications are not in writing, we will ensure that we only communicate them at an appropriate time of the day and that our staff identify themselves at the outset and make it clear what the purpose of the communication is.

Where any communication, material or financial promotions are sent out in relation to products and/or services that are referred to and regulated under COBS 4.2, the company ensures that the content and/or material: –

  • Where a product or service may place a client’s capital at risk, this is made clear
  • Quoting a yield figure, gives a balanced impression of both the short and long-term prospects for the investment
  • Promoting an investment or service whose charging structure is complex, or in relation to which we will receive more than one element of remuneration; includes the information necessary to ensure that it is fair, clear and not misleading and contains sufficient information, taking into account the needs of the recipients
  • Names the FCA and/or PRA as our regulator/s and refers to any matters not regulated by either of these, as not being regulated
  • Offering packaged products or stakeholder products not produced by us, gives a fair, clear and not misleading impression of the producer of the product or the manager of the underlying investments

6. Consumer Communications

In accordance with the FCA’s handbook requirements and in consideration of the Smarter Consumer Communications publication, the company aim to introduce more effective and efficient ways of communicating financial promotions and product/service information to our customers. In addition to providing the mandatory information via a durable medium, we also use the below communication methods where they are available to and of benefit to a customer: –

  • Social Media
  • SMS
  • Online and/or Interactive Tools
  • Infographics
  • Videos
  • [Add/delete as applicable]

In the design and development of effective disclosure communications, we aim to: –

  • Use plain language with short, understandable messages
  • Design the method of communication and message itself to suit the target audience
  • Ensure that key information is displayed prominently and framed effectively
  • Make use of images and graphics in addition to the standard text to ensure effective use of visual aids
  • Ensure all communications are timely and offer the facility for consumers to act
  • Ensure flexibility in the information so that it works across multiple mediums
  • [Add/delete as applicable]

Where any digital or online based methods of communication are utilised, we always ensure that we provide and/or offer paper-based versions of the information or promotion, so that all consumer groups are considered and catered to.

7. Communication on Arrears Accounts

Where customer contact is initiated on an account in arrears, the company ensures that it complies with the regulatory requirements as set out in CONC 7.9 of the FCA Handbook. When communicating verbally, face to face or in writing with a customer in arrears we can confirm that our staff: –

  • Advise the customer of the purpose of the call and if not the firm itself, what relationship they have to the firm
  • Do not provide any information or make any statements that could confuse or mislead the customer regarding the nature of the communication
  • Do not contact a customer at unreasonable times or at a time or place that the customer has previously requested not to be contacted
  • Do not use premium rate numbers only as on option for call backs
  • Do not disclose or threaten to disclose information about the customers’ debt to any third party
  • Act in a manner that is respectful and professional at all times
  • Take reasonable steps to ensure that third parties do not become aware that the customer is being pursued in relation to a debt, such steps include: –
    • ensuring that any envelopes used do not express the nature of the content or reason for contact
    • ensuring that no voice messages are left with details of the nature of the call
    • not disclosing any information to a third party who we may speak to on behalf of the customer

8. MCOB Regulatory Requirements

[Delete if MCOB does not apply to your firm]

As a firm that complies with the MCOB rules and regulations, the company also ensures that all financial promotions describe: –

  • Any early repayment charge as an “early repayment charge” and not use any other expression to describe such charges
  • Any higher lending charge as a “higher lending charge” and not use any other expression to describe such charges
  • Any lifetime mortgage as a “lifetime mortgage” and not use any other expression to describe such a mortgage
  • Any home reversion plan as a “home reversion plan” and not use any other expression to describe it
  • Any regulated sale and rent back agreement as a “sale and rent back agreement” and not use any other expression such as “equity release” to describe it

Our company procedure for all financial promotions is to have them reviewed and authorised by the Compliance Officer prior to them being used. Copies of authorised promotional materials are circulated throughout the company so that all staff are aware of the content and a record is kept of the promotion name, authorisation date and compliance adherence.

These procedures ensure that all financial promotions: –

  • Are accurate
  • Are balanced and, in particular, does not emphasise any potential benefits of the MCD regulated mortgage contract, other qualifying credit, home reversion plan or regulated sale and rent back agreement without also giving a fair and prominent indication of any relevant risks
  • Are sufficient for, and presented in a way that is likely to be understood by, the average member of the group to whom it is directed, or by whom it is likely to be received
  • Make it clear, where applicable, that the credit is secured on the customer’s home
  • Do not disguise, omit, diminish or obscure important items, statements or warnings
  • Where they contain a comparison or contrast, presents the comparison or contrast in a fair and balanced way and ensures that is meaningful

9. Non-Readily Realisable Securities

[Delete if this area does not apply to your firm]

A non-readily realisable security is a security which does not fall into any of the below: –

  • A readily realisable security
  • A packaged product
  • A non-mainstream pooled investment
  • A mutual society share
  • A deferred share issued by a credit union
  • A credit union subordinated debt

1. In accordance with COBS 4.7.7 and 4.7.8 of the FCA handbook, the company confirms that we do not communicate or approve any direct-offer financial promotions that relate to a non-readily realisable security, either to or for communication to a retail client without, unless conditions 1 and 2 below are satisfied: –

a. The retail client recipient of the direct-offer financial promotion is one of the following: –
b. certified as a ‘high net worth investor’
c. certified as a ‘sophisticated investor’
d. self-certified as a ‘sophisticated investor’
e. certified as a ‘restricted investor’

2. the company or any person authorised to arrange or deal in relation to the non-readily realisable security, will comply with the rules on appropriateness (see COBS 10) or equivalent requirements for any application or order that the person is aware, or ought reasonably to be aware, is in response to the direct offer financial promotion

Where the company or the retail client complies with one or more of the below conditions, the company are permitted to communicate or approve a direct-offer financial promotion relating to a non-readily realisable security to or for communication to a retail client: –

  • the company complies with the suitability rules set out in COBS 9, in relation to the investment promoted
  • The retail client has confirmed before the promotion is made that they are a retail client of another firm that will comply with the suitability rules set out in COBS 9, in relation to the investment promoted
  • The retail client is a corporate finance contact or a venture capital contact

9.1 Definitions of Investor Types

A certified high net worth investor, a certified sophisticated investor or a self-certified sophisticated investor are individuals who, within the period of twelve months ending with the day on which the communication is made, have signed a statement in the terms which substitutes ‘non-readily realisable securities’ for ‘non-mainstream pooled investments’. These statements are set out in Appendix 1 of this policy.

A certified restricted investor is an individual who, within the period of twelve months ending with the day on which the communication is made, has signed a statement in the terms set out in Appendix 2 of this policy.

9.2 Restrictions

The company understands that the restrictions on financial promotions for non-readily realisable securities, only applies to direct-offer financial promotions, which are defined as a promotion that must contain an offer or invitation and needs to specify the manner of response or include a form by which the response is to be made. So, where we make financial promotions that do not specify how to respond, these promotions are not bound by the non-readily realisable securities restrictions.

10. Record Keeping

In accordance and compliance with COBS 4.11, the company ensures that adequate and compliant records are kept of all communications, promotional materials and communication content. In addition, we also keep records of all due diligence check performed on any promotional materials and communications, prior to them being used.

Where we make use of any telemarketing campaigns, we ensure that adequate records of copies of any scripts used are retained for a period of 6 years after such scripts are no longer used. With regards to specific timeframes for retaining financial promotion and communication records, we keep to a standard 6-year retention period, except for the below stated terms, which are in accordance with COBS 4.11.1.

The company retains the record in relation to a financial promotion relating to: –

  • a pension transfer, pension conversion, pension opt-out or FSAVC, indefinitely
  • a life policy, occupational pension scheme, SSAS, personal pension scheme or stakeholder pension scheme, for six years
  • MiFID or equivalent third country business, for five years; and any other case, for three years

11. Responsibilities

The company will ensure that all staff are provided with the time, training and support to learn, understand and implement our communication and financial promotion policy and any subsequent procedures and that management are responsible for a top down approach and in ensuring that all staff are included and have the support needed to meet the regulatory requirements in this area.

We will also provide all staff with a copy of the Communication & Financial Promotion Checklist, to ensure that they are familiar with the questions and audit areas, further providing them with knowledge and support in this area.

The Compliance Officer and Senior Management have overall responsibility for ensuring that all communications and financial promotions meet the regulatory requirements and the objectives set out in this policy and that the Communication & Financial Promotion Checklist is used as a frequent audit tool to ensure compliance.