Financial Promotions PROFESSIONAL INDEPENDENT ADVISERS LTD 1 FINANCIAL PROMOTIONS

Transcription

1 PROFESSIONAL INDEPENDENT ADVISERS LTD Financial Promotions PROFESSIONAL INDEPENDENT ADVISERS LTD 1 FINANCIAL PROMOTIONS

2 FINANCIAL PROMOTION INVESTMENT BUSINESS Financial promotion covers what use to be referred to as advertising. Professional Independent Advisers Ltd has a duty to pay due regard to the information needs of its clients, and communicate information in a way which is clear and not misleading. A Person must not, in the course of business, communicate an invitation or inducement to engage in investment activity unless: They are an authorised person The content is approved by an authorised person Professional Independent Advisers Ltd requires that any form of financial promotion or advertising be confirmed as appropriate and compliant by its Advertising Officer prior to it being placed. An approval number will then be issued. An overview as to what constitutes an advert is: Mail shots Circulars Brochures Newspaper / Magazine Advertisements Television / Radio broadcasts Telemarketing Seminar Material (e.g. PowerPoint presentation and any handouts) Stationery, including Fax header sheets signatures Web site Sales Aids Below you will find the salient points of the FSA Guidance that you must also be aware of: With the exception of real-time promotions (see next page), before a financial promotion is communicated it must be approved by someone with relevant experience and comply with the financial promotion rules. There is no restriction on the media of communication to which the guidance applies and examples would be as follows: Contact with customers including by advisers, whether written or oral Distribution of mail shots whether by post, fax, or other media The use of sales aids which would themselves constitute a financial promotion PROFESSIONAL INDEPENDENT ADVISERS LTD 2 FINANCIAL PROMOTIONS

3 Presentations to groups of private customers General advertising such as magazines, newspapers, radio, television Real-time and non real-time financial promotion Real-time financial promotion is a financial promotion that is communicated in the course of a personal visit, telephone conversation or other interactive dialogue. A non real-time financial promotion is a financial promotion that is not a real-time financial promotion and includes a financial promotion communicated by letter, or included in publications disseminated in paper format, in material displayed in a website, or in sound and television broadcasts The following are to be regarded as indications that a financial promotion is a non real-time promotion The financial promotion is communicated to more than one person in identical terms (other than a name and/or address) 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 The communication is made by way of a system which in the normal course does not require the recipient to respond immediately When communicating financial promotion there are other regulations and guidelines that need to be reviewed, which are outside the FSA s guidance e.g. Code issued by the Advertising Standards Authority Independent Television Commission Radio Authority Telecommunications (Data Protection and Privacy) regulations 1999 PROFESSIONAL INDEPENDENT ADVISERS LTD 3 FINANCIAL PROMOTIONS

4 Exemptions from financial promotion guidance The following are exempt from the requirements of financial promotion A one off non real-time financial promotion or a one off solicited realtime financial promotion. If the conditions set out in 1-3 are satisfied, a financial promotion shall be regarded as one off. The conditions are: 1. The financial promotion is communicated only to one recipient or only to a group of recipients in the expectation that they would engage in any investment activity jointly 2. The identity of the product or service to which the financial promotion relates has been determined having regard to the particular circumstances of the recipient 3. The financial promotion is not part of a co-ordinated promotional strategy A financial promotion which only contains one or more of the following 1. The name of Professional Independent Advisers Ltd 2. The name of an investment 3. A contact point including . phone or fax 4. A logo 5. A brief factual description of Professional Independent Advisers Ltd s activities 6. A brief factual description of Professional Independent Advisers Ltd s fees 7. A brief factual description of Professional Independent Advisers Ltd s investment products 8. The price or yields of investments and the charges Professional Independent Advisers Ltd policy is that the above (1 to 8) still need to be approved by the advertising officer A personal illustration form or quotation A takeover promotion PROFESSIONAL INDEPENDENT ADVISERS LTD 4 FINANCIAL PROMOTIONS

5 Record Keeping Each financial promotion will be given an expiry date by the approving officer once it has been approved. If a financial promotion is deemed to be incorrect/no longer meets the financial promotion rules, it must be withdrawn immediately from use. It is also a good idea to set review dates for each financial promotion in order to ensure their continual approval with the financial promotion requirements. Our normal maximum approval time is 6 months. Professional Independent Advisers Ltd must ensure it keeps records of all financial promotions confirmed as complying with the non real-time financial promotion rules, and retain those records for: Six years in the case of a record relevant to a life policy or pensions contract or stakeholder pension scheme. Indefinitely in the case of a record relevant to a pension transfer, opt-out or FSAVC case Three years in any other case Records must confirm Who approved the financial promotion The date approved A copy of the final proof Details of the medium for which the financial promotion was authorised Evidence supporting any material factual statement about an investment matter in the financial promotion A copy of the published article, and if not possible must ensure that the final item is monitored to ensure on going compliance with the rules Records must be kept for Any written financial promotion used by an advisor PROFESSIONAL INDEPENDENT ADVISERS LTD 5 FINANCIAL PROMOTIONS

6 Co-ordinating promotional strategies e.g. a mail shot sent by Inclusions in non real-time promotion All financial promotion under this category is required to have the following inclusions as a minimum: Company name Contact details that can be in the form of either an address or a contact point for an address. The contact point can be phone, fax, etc There must be evidence that reasonable steps have been taken to show that the promotion is clear, fair and not misleading Solicited/unsolicited real-time financial promotion (URTFP) 1. An unsolicited real time financial promotion is a real-time promotion that is not a solicited real time financial promotion 2. A solicited real time financial promotion is a real time financial promotion which is solicited, that is, it is made in the course of a personal visit, phone call or other interactive dialogue, if that call, visit or dialogue a. Was initiated by the recipient of a financial promotion, or b. Takes place in response to an express request from the recipient of the financial promotion; And it is clear from all circumstances when the call, visit or dialogue is initiated or requested that during the course of the visit, call or dialogue financial promotions would be made concerning the kind of controlled activities or controlled investment to which the financial promotion relates. Professional Independent Advisers Ltd must not communicate an URTFP to a private customer unless: Listed in the exemptions under financial promotions The customer has an established existing customer relationship with Professional Independent Advisers Ltd and the relationship is such that the customer envisages receiving unsolicited real-time financial promotions PROFESSIONAL INDEPENDENT ADVISERS LTD 6 FINANCIAL PROMOTIONS

7 The above only applies to unsolicited real-time financial promotions with private customers. This includes telephone calls and personal visits. It does not include direct offer financial promotions. Overseas promotion Any type of overseas promotion must be discussed with the approved person dealing with financial promotion before any contact is made. There are specific guidelines that must be adhered to with this area of promotion. Internet and other electronic media Any material, which meets the definition of a financial promotion, including any video or moving image material incorporated in any site containing a financial promotion, should comply with the financial promotion rules in the FSA COBS handbook under chapter 3 section 3.4 and must be approved by an authorised person prior to usage. Internet promotion If Professional Independent Advisers Ltd wants to promote any form of direct offer to clients using a website the following areas are of importance: Any data protection legislation must be followed Firms should be aware of any problems which can be caused due to the use of certain colours and print types which could cause presentation problems A key features document must be available, and be easily obtainable from the website. The client must have the opportunity to view the KFD and other applicable risks before progressing to the application form, however it is not necessary to limit access to application forms before entrance to the KFD. Local printing must be available for the KFD Professional Independent Advisers Ltd may class a financial promotion as a direct offer financial promotion where Professional Independent Advisers Ltd is unable to provide a copy of the application form electronically Firms can direct clients to the FSA website as a hyperlink if they wish as further guidance will be available for clients on specific areas of advice PROFESSIONAL INDEPENDENT ADVISERS LTD 7 FINANCIAL PROMOTIONS

8 Direct Offers Financial Promotions These are defined as An offer by the firm to enter into an investment agreement with any one who responds to the financial promotion An invitation to anyone who responds to the financial promotion to make an offer to the firm to enter into an investment agreement; And Specifies the manner of the response or includes a form in which any response is to be made For those who design a direct offer, we have listed below some items that have to be included in the direct offer, these are: Sufficient information to enable the client to make a informed assessment That Professional Independent Advisers Ltd is regulated by the Financial Services Authority If the clients has doubts about suitability, how this can be addressed Our full name and address of the person offering the promotion As we can not hold client money, the name of the company to whom payment should be made Basis or amount of any o Charges and expenses which the private customer will or may bear o Commission or remuneration which is payable by us to a 3 rd party PROFESSIONAL INDEPENDENT ADVISERS LTD 8 FINANCIAL PROMOTIONS