1. Eversheds Digital Banking Seminar Delivering compliant digital products 30 September 2015 Clare Hughes Partner

2. Eversheds LLP | −Advertising retail financial products via digital media −The origination process and points to note across different products −The use of apps and the challenges they present −Treating customers fairly – what does this mean in the context of digital media? −Retail financial products – our top 10 tips What we will cover

3. Eversheds LLP | −The key challenge is often space Facebook, Twitter, banners, in app advertising Balancing the brevity valued in digital media with the requirement to show information Taking into account legal requirements and those of the regulator −Issues to bear in mind Financial promotions must be internally compliant No reliance on click-throughs Consistent message from OFT and FCA Latest FCA position set out in FG15/4 – Social Media and Customer Communications Financial promotions and digital media

4. Eversheds LLP | −Is this a brand promotion message or a product specific message? How does this impact form and content? −Are you including trigger information? Do you need to? What impact on space does this have? −Can you avoid including trigger information in that financial promotion? At what stage in the dialogue with the customer are you? Can the trigger be postponed to a later screen? −Can you use phasing in effect to make the financial promotion bigger? Banners Placement of calls to action Pushing customers through necessary information Considerations Financial promotions and digital media

5. Eversheds LLP | −Is this a financial promotion? Credit and the boundaries of mere publication −Presentation of risks as well as benefits FCA driven requirement Relevant to mis-selling so important to get this right How to present it So called “hover boxes”? How prominently? Small print? Transparency is key −APRs In relation to credit and mortgages – are you tracking your APRs? Web build and application routes Considerations Financial promotions and digital media

6. Eversheds LLP | −Regulatory risk Shift in legal and regulatory risk FCA is more vocal OFT – relevant to credit products FCA does review financial promotions and is focussing on customer communications “Smarter Customer Communications” discussion paper Considerations Financial promotions and digital media

7. Eversheds LLP | −Credit - collecting customer information Affordability assessments and verification of data Requesting evidence from the customer? Benchmarking against standard data? −Phases of contracting – pushing the customer through separate screens vs. tabs and links to documents −Provision of pre-contractual information – all products “In good time”? FCA’s TR15/5 – Provision of Premium Finance to Retail General Insurance Customers Problems of not providing pre-contractual information correctly and at the right time Consumer Credit (Disclosure of Information) Regulations Financial Services (Distance Marketing) Regulations Durable medium? Problems with getting this wrong Copies sent tot he customer’s email? Originating accounts Digital media

8. Eversheds LLP | −Provision of pre-contractual information cont. Problems of presentation – SECCIs Self standing Formatting Consequence of getting it wrong – unenforceability −The agreement / terms and conditions Clarity of presentation Is it clear to the customer this is the point of “purchase”? Digital signatures Credit – on the agreement – formatting of the agreement Scroll boxes The specific problem of credit Forms of signature Typing a name Click boxes Electronic codes Capturing your signature (if required) Storing a record of the agreement for future reference Originating accounts Digital media

9. Eversheds LLP | −Mortgages – specific issues No issue sending offer docs, KFIs etc to the customer Even second charges to be free of the challenges of the CCA soon BUT – the mortgage deed must be signed with a wet signature Biggest barrier to use of digital media Advice post Mortgage Market Review changes Use of Skype & FaceTime Originating products Digital media (cont’d)

10. Eversheds LLP | −Is there enough space to be able to go through the origination process properly? −Presentation of documents −Is it making things too easy? Remember the regulator’s concern in some markets that the application process was presented as ease and “hassle free” leading to poor customer outcomes Using apps Digital media (cont’d)

11. Eversheds LLP | −Transparency In financial promotions In the customer journey −Are you facilitating the customer’s ability to shop around? −Are customers given the option to print / store documents? −Is there a clear understanding of the customer’s cancellation rights? −Clear provision of a helpline / contact number? −Have you got all the information you need to decide whether the product is appropriate for that customer? What does TCF mean for digital banking? Digital media(cont’d)

12. Eversheds LLP | −Try things for yourself Walk through the journey end to end Was the experience clear and transparent? Was enough information provided? −Structure before detail −Keep the customer at the heart of your decisions around the use of digital −It isn’t just about ease – it is also about making informed decisions −The need for standalone compliance −Don’t bury risks and regulatory required information −Be clear, fair and not misleading −Don’t compromise proper execution to move with the trend Our top tips Digital media (cont’d)

13. Questions?

14. eversheds.com ©2015 Eversheds LLP Eversheds LLP is a limited liability partnership Partner Clare Hughes Partner, Company commercial +44 783 113 3288 clarehughes@eversheds.com Eversheds One Wood Street London EC2V 7WS