Clarity over financial promotions

The FCA has said that they have become aware of a number of firms issuing financial promotions which are failing to meet the criteria of being fair, clear and unambiguous. A number of promotions have been found that indicate some regulated firms have been suggesting or implying that all of the firms activities they undertake are regulated by the FCA and/or the PRA, when in actual fact they are not.

This has prompted the FCA to release an open letter to the CEOs of all regulated firms, on Wednesday 9th January 2019. The purpose of the letter is to remind firms and CEOs of their responsibilities relating to the use of financial promotions. The letter outlines what the FCA deems to constitute fair, clear and unambiguous financial promotions.

All firms are encouraged to read the letter and reflect on it ensuring they understand the rules relating to financial promotions.

Jonathan Davidson, Executive Director of Supervision – Retail and Authorisation at the FCA said:

‘It is completely unacceptable for firms, which are regulated for some of their business, to market unregulated investments by implying to customers that all their business is regulated. We are committed to stamping out this misleading practice and recommend that customers should ask firms whether what they are buying is really regulated by the FCA.’

Whilst the FCA does not approve advertising, they do monitor adverts across various formats in the UK and have provided information on their ability to have a promotion or advert banned. The onus remains on firms to ensure that their financial promotions are compliant.

If you have any concerns around your financial promotions or want your staff updated on best practice, please get in touch with us today. We are currently supporting firms on financial promotions training making sure they know how to meet best practice.

Financial Promotions – getting it right

Financial Promotions, FSTP,

Contact us to discuss how we can support you or have the above session delivered for your staff. Ensuring that they are maintaining best practice as the regulator looks to shine a spotlight on financial promotions.

Stuart Bull

Marketing Manager

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