BCOBS 2.3 Other general requirements for communications and financial promotions

A firm must ensure that each communication made to a banking customer and each financial promotion communicated or approved by the firm:

1. (1)

   includes the name of the firm;

2. (2)

   is accurate and, in particular, does not emphasise any potential benefits of a retail banking service without also giving a fair and prominent indication of any relevant risks;

3. (3)

   is 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; and

4. (4)

   does not disguise, diminish or obscure important information, statements or warnings.

A provider must ensure that each communication made to a payment service customer or an electronic money customer and each payment service or electronic money promotion communicated by it:

1. (1)

   includes the name of the provider;

2. (2)

   is accurate and, in particular, does not emphasise any potential benefits of a payment service or electronic money product without also giving a fair and prominent indication of any relevant risks;

3. (3)

   is 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; and

4. (4)

   does not disguise, diminish or obscure important information, statements or warnings.

If a communication or a financial promotion compares a retail banking service with one or more other retail banking service (whether or not provided by the firm), the firm must ensure that the comparison is meaningful and presented in a fair and balanced way.

If a communication or payment service or electronic money promotion compares the cost of a currency transfer service with the cost of a service provided by any other provider or providers (whether identified or not):

1. (1)

   the comparison must be meaningful and presented in a fair and balanced way; and

2. (2)

   the firm or other provider must be able to substantiate the claims made.

If a communication or a financial promotion in relation to a retail banking service refers to a particular tax treatment or rate of interest payable, a firm must ensure that a prominent statement that the tax treatment or the rate of interest payable:

1. (1)

   depends on the individual circumstances of each banking customer; and

2. (2)

   may be subject to change in the future;

is either included in that communication or financial promotion, or provided to the banking customer on paper or in another durable medium in good time before the banking customer is bound by the contract for that retail banking service.

1. (1)

   This rule applies to the communication of the balance of a payment account within the meaning of the Payment Accounts Regulations, other than a current account mortgage.

2. (2)

   The communication must not include a figure described as “available funds”, “balance”, “available balance” or any similar expression that includes both sums standing to the credit of the account and sums available under an authorised non-business overdraft agreement associated with the account.