UK financial promotions

FCA reviews 1,686 financial promotions in 2021

Retail investments’ use of social media influencers on various platforms to market investments is becoming a concern for the FCA.

The new FCA rules seek to improve risk warnings on ads and ban incentives to invest, for example new joiner or refer-a-friend bonuses.

n Q3 of 2021, the FCA reviewed 514 financial promotions, with the regulator ordering 74 promotions to be amended or withdrawn.

The FCA expects to intervene in real-time more often, including, if necessary, turning down more applications for authorisation.

The Government will restrict approval of the financial promotions of unauthorised firms through the imposition of requirements by the FCA.

If online platforms choose to display and profit from adverts for risky investments, they should also comply with financial promotions rules.

In Q1 2021, the UK FCA reviewed 441 financial promotions, with 105 of them amended or withdrawn.

The FCA has confirmed that it is pursuing a number of enforcement investigations involving financial promotions.

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