PART VIExempt Communications: Certain Controlled Activities

Promotions of securities already admitted to certain markets69

1

In this article—

  • “relevant investment” means any investment falling within—

    1. a

      paragraph 14F1, 15 or 15A of Schedule 1; or

    2. b

      paragraph 17 or 18 of that Schedule so far as relating to any investment mentioned in sub-paragraph (a);

  • “relevant market” means any market on which investments can be traded and which—

    1. a

      meets the criteria specified in Part I of Schedule 3; or

    2. b

      is specified in, or established under, the rules of an exchange specified in, Part F2... III of that Schedule.

2

If the requirements of paragraph (3) are met, the financial promotion restriction does not apply to any communication which—

a

is a non-real time communication or a solicited real time communication;

b

is communicated by a body corporate (“A”), other than an open-ended investment company; and

c

relates only to relevant investments issued, or to be issued, by A or by another body corporate in the same group,

if relevant investments issued by A or by any such body corporate are permitted to be traded on a relevant market.

3

The requirements of this paragraph are that the communication—

a

is not, and is not accompanied by, an invitation to engage in investment activity;

b

is not, and is not accompanied by, an inducement relating to an investment other than one issued, or to be issued, by A (or another body corporate in the same group);

c

is not, and is not accompanied by, an inducement relating to a relevant investment which refers to—

i

the price at which relevant investments have been bought or sold in the past, or

ii

the yield on such investments,

unless the inducement also contains an indication that past performance cannot be relied on as a guide to future performance.

4

For the purposes of this article, an investment falling within paragraph 17 or 18 of Schedule 1 is treated as issued by the person (“P”) who issued the investment in respect of which the investment confers rights if it is issued by—

a

an undertaking in the same group as P; or

b

a person acting on behalf of, or pursuant to, arrangements made with P.

5

For the purposes of paragraph (3)(a), “engaging in investment activity” has the meaning given in section 21(8) of the Act; and for the purposes of paragraph (3)(c)(ii), a reference, in relation to an investment, to earnings, dividend or nominal rate of interest payable shall not be taken to be a reference to the yield on the investment.