ECO 2
OUTGOING
ECA PROVIDERS
ECO 2.1
Application and purpose
- 01/12/2004
Application
ECO 2.1.1
See Notes
ECO 2 applies to:
- (1) an outgoing ECA provider; and
- (2) every firm in relation to a financial promotion which is an outgoing electronic commerce communication.
- 01/11/2002
Purpose
ECO 2.1.2
See Notes
- (1) The main purpose of this chapter is to implement the provisions of the E-Commerce Directive as these apply to firms regulated by the FSA.
- (2) The purpose of ECO 2.2 (Modification of the content and territorial scope of COB) is to ensure that:
- (a) an outgoing ECA provider; and
- (b) a firm, in relation to a financial promotion which is an outgoing electronic commerce communication;
- in complying with COB, is able to disregard any provision of COB which is included in the 'consumer contract derogation' or 'insurance derogation' (set out in the Annex to the E-Commerce Directive), when dealing with a consumer in another EEA State.
- (3) ECO 2.2 also extends the territorial scope of COB 3 (Financial promotion), ICOB 3 (Financial promotion) and MCOB 3 (Financial promotion) in relation to a financial promotion which is an outgoing electronic commerce communication, whether or not the recipient is a consumer.
- (4) ECO 2.3 (Minimum information requirements) imposes the information requirements of the E-Commerce Directive on firms when they carry on an electronic commerce activity with an EEA ECA recipient from a UK establishment, whether or not the recipient is a consumer. These requirements are in addition to the requirements otherwise applicable to firms when they carry on a regulated activity.
- 14/01/2005
ECO 2.2
Modification of the content and territorial scope of COB
- 01/12/2004
Lifting of rules included in the derogations
ECO 2.2.1
See Notes
In relation to:
- (1) an electronic commerce activity carried on from an establishment in the United Kingdom with or for an EEA ECA recipient who is a consumer; and
- (2) a financial promotion which is an outgoing electronic commerce communication made to or directed at a consumer;
a firm is not required to comply with any of the provisions mentioned in ECO 1.2.6 E 1(a) and (1)(c) (essential information) or, if it is an insurer carrying on insurance business falling within the scope of the Insurance Directives, ECO 1.3.3 R.
- 22/09/2002
ECO 2.2.2
See Notes
The provisions mentioned in ECO 1.2.6 E (1)(a) and ECO 1.2.6 E (1)(c) and ECO 1.3.3 R are those that the United Kingdom, as a Host State, applies to incoming ECA providers under the 'consumer contract derogation' and 'insurance derogation' respectively. A corollary of this approach is that these provisions are disapplied to:
- (1) an outgoing ECA provider when it provides electronic commerce activities to an EEA ECA recipient who is a consumer; and
- (2) a firm, in relation to a financial promotion which is an outgoing electronic commerce communication made to or directed at a consumer;
The provisions at ECO 1.2.6 E, ECO 1.2.6 E (1)(b) and ECO 1.2.6 E (1)(d) do not apply in these situations in any event.
- 23/09/2002
Financial promotion
ECO 2.2.3
See Notes
- (1) In relation to a financial promotion which is an outgoing electronic commerce communication, a firm must comply with COB 3 (Financial promotion), ICOB 3 (Financial promotion) and MCOB 3 (Financial promotion) as if the person to whom the communication is made or directed was in the United Kingdom.
- (2) Accordingly, (1) overrides COB 3.3 (Application: where?), ICOB 3.4 (Application: where?) and MCOB 3.3 (Application: where?).
- (3) But (1) is subject to ECO 2.2.1 R, which disapplies certain COB rules applicable to incoming ECA providers when dealing with consumers.
- 14/01/2005
ECO 2.2.4
See Notes
- 14/01/2005
ECO 2.3
Minimum information requirements
- 01/12/2004
ECO 2.3.1
See Notes
- 24/09/2002
ECO 2.3.2
See Notes
ECO 3 Annex 1 R implements provisions contained in the E-Commerce Directive, as follows:
- (1) ECO 3 Annex 1 R(1) implements articles 5 (except paragraph 1(f)), 6 and 10 of the directive; these provisions require certain information to be provided by an outgoing ECA provider before any contract is entered into;
- (2) ECO 3 Annex 1 R(2) implements article 11 of the directive, which relates to matters arising after the contract has been entered into; and
- (3) ECO 3 Annex 1 R(3) implements article 5.1(f) of the directive; these requirements apply where the outgoing ECA provider is a professional firm (or a person that is regulated by the equivalent of a designated professional body in an EEA State other than the United Kingdom); this Annex will therefore mainly be relevant to firms which are solicitors, accountants, or actuaries.
- 24/09/2002