The FCA clamps down on “rogue financial promotions”

At the end of last year, the FCA published a press release covering ‘rogue’ financial promotions (illegal, unfair or misleading financial marketing) detailing intended new measures to be applied to firms intending to approve financial promotions on behalf of unauthorised firms and sought feedback from firms (CP22/27). Recently we received the latest policy statement (PS23/13) which covers next steps and takes into consideration the following:

• Customers should consistently be offered appropriate products and services while being treated fairly;
• The proliferation of financial promotions via digital channels results in consumers buying financial offerings without seeking guidance;
• With the escalating cost of living, consumers are faced with challenging financial choices, often swayed by financial advertisements that can be ambiguous, unjust, or deceptive; and
• The expectation under FSMA is securing an appropriate degree of protection for consumers.

Overall, it endeavours to ensure consumers are provided with the information needed to make informed decisions.

Changes in the Policy Statement mandate firms to showcase their expertise relevant to the promotions they aim to approve. Currently, any firm authorised by the FCA can approve financial promotions for non-authorised firms subject to rules concerning financial promotions and adverts . However, the upcoming legislative changes will necessitate these authorised firms to undergo additional screenings before they can approve promotions. This will grant the FCA enhanced supervision to prevent potential harm. From the 7^{th of} February 2024 firms will need to apply for ‘approver permission’ unless your firm is exempt under FSMA’s Exemptions. There is a 3-month window to apply for approver permission opening on the 6^th of November 2023 and closing on the 6^th of February 2024.

If your firm falls within the scope of the impending changes, Objectivus will be able to guide you through the application process and any additional support your firm may require in this field.

Additionally, your firm may benefit from a review of its financial promotions procedures.

Please get in touch with Nicholas Dunn njd@objectivus.com to book an initial discovery call.