The FCA has proposed new measures to clamp down on illegal, unfair or misleading financial marketing.
In CP22/27- Introducing a gateway for firms who approve financial promotions, the regulator outlines new checks for firms that wish to approve financial promotions. The new measures will require firms to demonstrate they have the right expertise for the promotions they wish to approve.
Under current legislation, any FCA authorised firm is allowed to approve financial promotions on behalf of other firms who are not authorised by the regulator. The changes being introduced will require authorised firms to undergo a new screening process before they are allowed to approve financial promotions. Firms will also be required to regularly report back to the FCA on financial promotions they have approved.
The proposed reforms aim to ensure that the FCA can act quickly to put a stop to harmful financial promotions communicated by unauthorised firms, including in areas such as high-risk investments and Buy Now Pay Later.