MIGI 5
Disclosure of your Firm's Statutory Status
MIGI 5.1
Introduction
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MIGI 5.1.1
See Notes
You need to disclose certain information
about your firm when you conduct mortgage or insurance mediation activity
with or for customers. This is in line with Principle 7 (Communications with
clients) (see Part 1, Chapter 3),
which requires you to pay due regard to the information needs of your clients
and communicate information to them in a way that is clear, fair and not misleading.
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MIGI 5.1.2
See Notes
This chapter covers the requirement in GEN
4 (see General Provisions (GEN)) that all authorised
firms disclose their 'statutory status' in every letter (or electronic equivalent)
sent to private customers. In addition, there are also specific requirements
in MCOB (see Part 2, Chapter 2.2)
and ICOB (see Part 3, Chapter 3.3)
relating to what information mortgage and insurance intermediaries, respectively,
have to disclose.
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MIGI 5.2
Statutory status disclosure
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MIGI 5.2.1
See Notes
Our rules require firms to provide appropriate
and adequate information about the identity of the firm's regulator, i.e.
the FSA. The requirements regarding statutory status are in GEN 4.3 and GEN 4 Annex 1. These can be
summarised as follows:
(1)
Authorised firms must take reasonable
care to ensure that every letter (or electronic equivalent) which it or its
employees send to a private customer, with a view to or in connection with
the firm carrying on a regulated activity, discloses that the firm is "Authorised
and regulated by the Financial Services Authority".
(2)
Appointed representatives are
required to disclose that "[name of Appointed Representative] is an appointed
representative of [Firm] which is authorised and regulated by the Financial
Services Authority".
(3) You should not abbreviate the Financial Services Authority to
FSA in this context.
(4) You are likely to find it convenient to include the required disclosure
on your firm's letterhead.
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MIGI 5.2.2
See Notes
To allow mortgage and insurance intermediaries
who are not currently authorised time to make the necessary changes to their
stationary, we have introduced
a transitional provision which means that firms do not have to amend their
stationary to include disclosure
of their statutory status until 15 July 2005.
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MIGI 5.2.3
See Notes
The following chapters
of this Guide are also relevant:
• | Advising and selling standards (MCOB 4) - Part II, Chapter 2.2 |
• | Advising and selling standards (ICOB 4) - Part III, Chapter 3.3 |
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