EDITION 1 | MAY 2021
29
It is his suggestion that anyone already involved in , or looking to get involved in lead generation in the future , reads this paper .
There are various types of lead generation activity :
1 Sales of personal data that has been collected within GDPR rules and regulations and with contact consent
1 Website marketing or speaking directly with prospects with a view to introducing the lead to a regulated firm
1 Initial fact-finding with customer in order to sell qualified leads with additional data .
However , it is essential that there is the ability to decide which is regulated and what is not ?
An example of a non-regulated / unregulated activity would be where the lead provider is simply selling GDPR compliant data , for example , data they have collected from customer surveys , etc ., for which they have obtained consent . It is very important to stress here that this would be basic client contact information , such as name , address , contact telephone number , email , etc . We say basic here because the purchasing intermediary undertakes the subsequent marketing activity of the product .
If the lead generator ’ s activity goes beyond this , then it is more likely that they may be straying into regulated activity . For instance :
1 The lead provider constructs and presents a non-real time financial promotion ( letter / email / website ) and then makes introductions to an intermediary . For example , this could be introductions derived from Search Engine Optimisation ( SEO ), Pay Per Click ( PPC ) or other website directed activity .
1 Taking this a step further – where the lead provider interacts with customers , perhaps through telemarketing activity or some initial basic fact finding – it becomes more likely that they may go beyond merely introducing and could be undertaking regulated distribution activity .
What would it make sense for firms to check if they are thinking of using a lead generation firm ?
A compliant response is that it all boils down to due diligence .
Take time to understand the activity carried out by the lead provider to see whether it falls within the definition of insurance distribution and the distribution of financial promotions and if so , is the lead generator suitably authorised . Be aware – most are not .
If you feel that the activity of the lead generator is straying into authorised activities , then you would expect the firm to have relevant and appropriate FCA approval with permissions for :
1 Arranging ( bringing about ) deals in investments
1 Non-Investment Insurance Contracts
1 Making arrangements with a view to transactions in investments
1 Non-Investment Insurance Contracts
1 If the firm does not have its own DA permissions , they could be an AR or trading style of a firm or individual . Ensure you check that out thoroughly on the FCA register
1 Ensure leads are being collected appropriately by checking their websites and disclosures
1 Under normal circumstances visit the premises and watch / listen to them in action on calls .
For reference , this is all covered within the PERG section of the FCA handbook .