[F1137RFinancial promotion rulesU.K.
(1)The FCA may make rules applying to authorised persons about the communication by them, or their approval of the communication by others, of invitations or inducements—
(a)to engage in investment activity, or
(b)to participate in a collective investment scheme.
(2)Rules under this section may, in particular, make provision about the form and content of communications.
(3)Subsection (1) applies only to communications which—
(a)if made by a person other than an authorised person, without the approval of an authorised person, would contravene section 21(1), and
(b)may be made by an authorised person without contravening section 238(1).
(4)But subsection (3) does not prevent the FCA from making rules under subsection (1) in relation to a communication that would not contravene section 21(1) if made by a person other than an authorised person, without the approval of an authorised person, if the conditions set out in subsection (5) are satisfied.
(5)Those conditions are—
(a)that the communication would not contravene subsection (1) of section 21 because it is a communication to which that subsection does not apply as a result of an order under subsection (5) of that section,
(b)that the FCA considers that any of the requirements of—
(i)paragraphs 1 to 8 of Article 19 of the markets in financial instruments directive,
(ii)any implementing measure made under paragraph 10 of that Article, F2...
(iii)Article 77 of the UCITS directive, [F3or
(iv)Articles 10 and 11 of the mortgages directive,]
apply to the communication, and
(c)that the FCA considers that the rules are necessary to secure that the communication satisfies such of the requirements mentioned in paragraph (b) as the FCA considers apply to the communication.
(6)“Engage in investment activity” has the same meaning as in section 21.
(7)The Treasury may by order impose limitations on the power to make rules under this section.]
Textual Amendments
F1Pt. 9A substituted for ss. 138-164 (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), ss. 24(1), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.
F2Word in s. 137R(5)(b)(ii) omitted (21.9.2015) by virtue of The Mortgage Credit Directive Order 2015 (S.I. 2015/910), art. 1(4)(a), Sch. 1 para. 1(4)(a) (with Pt. 4)
F3S. 137R(5)(b)(iv) and word inserted (21.9.2015) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), art. 1(4)(a), Sch. 1 para. 1(4)(b) (with Pt. 4)