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GEN 4.5 Statements about authorisation and regulation by the appropriate regulator

Application

31/10/2008R

This section applies to a firm:

  1. (1)

    communicating with a customer; or

  2. (2)

    communicating or approving a financial promotion other than:

    1. (a)

      a financial promotion that would benefit from an exemption in the Financial Promotion Order if it were communicated by an unauthorised person;

    2. (b)

      a promotion of an unregulated collective investment scheme that would breach section 238(1) of the Act if made by an authorised person (firms may not communicate or approve such promotions).

08/10/2023R
  1. (1)

    This section also applies to a registered person communicating a financial promotion relating to one or more qualifying cryptoassets (in reliance on the exemption in article 73ZA of the Financial Promotion Order).

  2. (2)

    For the purpose of (1), references in this section to a firm include reference to a registered person.

08/10/2023G

As unauthorised persons, registered persons must also ensure that they do not contravene section 24 of the Act (False claims to be authorised or exempt).

01/04/2013G

GEN 4.5.1 R (1) does not apply to a firm when communicating with an eligible counterparty.

01/04/2013G

However, misleading statements by a firm when communicated with an eligible counterparty may involve a breach of Principle 7 (Communications with clients) or Part 7 (Offences relating to financial services) of the Financial Services Act 2012, as well as giving rise to private law actions for misrepresentation.

The duty

01/04/2013R

A firm must not indicate or imply that it is authorised by the FCA in respect of business for which it is not so authorised.

01/04/2013R

A firm must not indicate or imply that it is authorised by the PRA in respect of business for which it is not so authorised.

01/04/2013R

A firm must not indicate or imply that it is regulated or otherwise supervised by the FCA in respect of business for which it is not regulated by the FCA.

01/04/2013R

A firm must not indicate or imply that it is regulated or otherwise supervised by the PRA in respect of business for which it is not regulated by the PRA.

01/01/2021G

It is likely to be misleading for a firm that is not authorised by the FCA or PRA to state or imply that it is so authorised. It is also likely to be misleading for a firm to state or imply that a client will have recourse to the Financial Ombudsman Service or the FSCS where this is not the case.

  1. (3)

    [deleted]

01/04/2013G

As well as potentially breaching the requirements in this section, misleading statements by a firm may involve a breach of Principle 7 (Communications with clients) or section Part 7 (Offences relating to financial services) of the Financial Services Act 2012, as well as giving rise to private law actions for misrepresentation.