Part II Regulated And Prohibited Activities
Financial promotion
I121 Restrictions on financial promotion.
C1C2C3C4C71
A person (“A”) must not, in the course of business, communicate an invitation or inducement to engage in investment activity.
C5C62
But subsection (1) does not apply if—
a
A is an authorised person; or
b
the content of the communication is approved for the purposes of this section by an authorised person.
3
In the case of a communication originating outside the United Kingdom, subsection (1) applies only if the communication is capable of having an effect in the United Kingdom.
4
The Treasury may by order specify circumstances in which a person is to be regarded for the purposes of subsection (1) as—
a
acting in the course of business;
b
not acting in the course of business.
5
The Treasury may by order specify circumstances (which may include compliance with financial promotion rules) in which subsection (1) does not apply.
6
An order under subsection (5) may, in particular, provide that subsection (1) does not apply in relation to communications—
a
of a specified description;
b
originating in a specified country or territory outside the United Kingdom;
c
originating in a country or territory which falls within a specified description of country or territory outside the United Kingdom; or
d
originating outside the United Kingdom.
7
The Treasury may by order repeal subsection (3).
8
“Engaging in investment activity” means—
a
entering or offering to enter into an agreement the making or performance of which by either party constitutes a controlled activity; or
b
exercising any rights conferred by a controlled investment to acquire, dispose of, underwrite or convert a controlled investment.
9
An activity is a controlled activity if—
a
it is an activity of a specified kind or one which falls within a specified class of activity; and
b
it relates to an investment of a specified kind, or to one which falls within a specified class of investment.
10
An investment is a controlled investment if it is an investment of a specified kind or one which falls within a specified class of investment.
11
Schedule 2 (except paragraph 26) applies for the purposes of subsections (9) and (10) with references to section 22 being read as references to each of those subsections.
12
Nothing in Schedule 2, as applied by subsection (11), limits the powers conferred by subsection (9) or (10).
13
“Communicate” includes causing a communication to be made.
14
“Investment” includes any asset, right or interest.
15
“Specified” means specified in an order made by the Treasury.