PART IVExempt Communications: All Controlled Activities
Introductions15
1
If the requirements of paragraph (2) are met, the financial promotion restriction does not apply to any communication which is made with a view to or for the purposes of introducing the recipient to—
a
an authorised person who carries on the controlled activity to which the communication relates; or
b
an exempt person where the communication relates to a controlled activity which is also a regulated activity in relation to which he is an exempt person.
F11A
But paragraph (1) does not apply to any communication made with a view to or for the purpose of an introduction to a person who carries on an activity of the kind specified by—
a
paragraph 4B of Schedule 1;
b
paragraph 4C of that Schedule;
c
paragraph 11 of that Schedule, to the extent that it relates to that paragraph 4B or that paragraph 4C.
2
The requirements of this paragraph are that—
a
the maker of the communication (“A”) is not a close relative of, nor a member of the same group as, the person to whom the introduction is, or is to be, made;
b
A does not receive from any person other than the recipient any pecuniary reward or other advantage arising out of his making the introduction; and
c
it is clear in all the circumstances that the recipient, in his capacity as an investor, is not seeking and has not sought advice from A as to the merits of the recipient engaging in investment activity (or, if the client has sought such advice, A has declined to give it, but has recommended that the recipient seek such advice from an authorised person).