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UK Insurance directory  - FSA Compliance

FSA Compliance for unauthorised persons

We can only provide information comparing products generally, but cannot make specific recommendations or recommend a specific financial firm other than give contact details. We will provide advantages and disadvantages of products, but are not allowed to be specific about firms or products.

Clause references taken from the Financial Services Authority (FSA) 'The Authorisation Manual - Financial Promotion and Related Issues - Further Feedback on CP104 and Made Text' May 2002.

1.1.2G - An authorised person must not communicate an invitation or inducement unless it is approved by an authorised person or exempt.

1.4.7G - An advertisement which ensures that a person has expertise will not be an inducement.

1.4.8G - The availability of contact details is not an inducement.

1.4.9G - Directory entries listing contact details is not an inducement. Directories containing information are feasible.

1.4.11G - Website hyperlinks which are a logo or name will not be an inducement. These links can be part of a narrative.

1.4.12G - Banner advertisements are not allowed.

1.4.13G - Historic or live prices are not an inducement.

1.4.14G - Statements about performance of companies are not an inducement.

1.4.15G - Journalist's must not recommend/or make buy or sell decisions. Journalist's must only give objective assessments and must not encourage persons to make any investments. Journalist's can repeat a recommendation from other sources. Journalists must not be influenced by third parties.

1.4.17G - Tables providing factual information will not be an inducement.

1.4.18G - Flow charts or decisions trees are an educational tool and must enable a person to identify generic options.

1.4.22G - Unauthorised persons must state 'we do not provide investment services - you need to consult an authorised person'.

1.4.26G - Unauthorised persons can explain terms of an agreement or the consequences of taking a particular course.

1.6.2G - Banner advertisements should be avoided on websites.

1.6.6G - A website operator providing third party hyperlinks will not normally be communicating information based upon the third party website.

1.9.3G - An authorised person must approve its contents to be displayed upon an unauthorised website.

1.10.7G - Websites and messages placed in chat rooms will be non-real time communication as long as they avoid invitation, inducements and recommendations of a particular product.

1.12.8G - Financial promotion of a website will occur if it is directed at the United Kingdom and which is registered with a UK search engine.

1.12.14G - A generic promotion must not mention an investment or a particular insurance product by any person who would give advice or arrange, sell or manage a product.

1.12.17G - Journalist’s may be able to take advantage of the generic promotion exemption when writing about investments generally.

1.12.25G - Journalist’s must not give advice on or lead or enable persons to buy or sell.

1.12.26G - Unauthorised persons must declare their interest and whether they are part of any related organisation as part of their business.

1.12.29G - A Journalist does not have to disclose a financial interest as part of their business rules.

1.22.2G - A website operator who is communicating financial promotions for other people will be merely acting as conduit and an exemption will apply.

1.22.3G - A hypertext with a name or logo of a product supplier is not a financial promotion. A website which is a directory of website addresses will not be a financial promotion. Financial promotion on a third party site linked by hypertext will not be the responsibility of the website operator who had the hyperlink on his/her website.

1.25.2G - Unauthorised persons can provide the following information on their website as a generic advice:

- financial planning
- advice on investing abroad
- advice on merits of investment or unit trusts.

1.26.3G - Guiding a person through a flow chart or decision tree is not advice, where a person needs to understand what the questions or options are and how to determine which option best applies. There should be no recommendation of a particular product.

1.28.1G - Information is classed as a statement of facts or figures. Giving information without making any comment or value judgement on its relevance to decisions which an investor may make is not advice.

1.28.3G - Information may often involve:

- listing of shares and unit prices
- company news or announcements
- an explanation of the terms and conditions of an investment
- comparison of the benefits and risks of one investment as compared to another
- league tables showing the performance of investments of a particular kind against set published criteria
- details of directors dealing in the shares of their own companies
- alerting persons to the happening of certain events. 

1.32.11G - Website owners operating bulletin boards or chat rooms must not allow unauthorised persons to give advice or make financial promotions or make misleading statements with a view to manipulating the market. This should be brought to the attention of those using the website functions.

1.33.1G Introducers must only be concerned with making or helping others make communications.

1.33.2G - Introducers should always introduce another person to an authorised person. The authorised person will be giving the advice to the client only. Introducers should always refuse to give advice.

1.33.3G - A website operator without giving advice, sets up links to the sites of authorised firms and does not receive any payment from any of the firms for doing so. See 1.33.5G.

1.33.5G - Where unauthorised persons or website operators are finding potential customers for Independent Financial Advisors, the Introducer/website operator is allowed to receive a payment for making introductions.

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