UNITED KINGDOM: Action needed to ensure your financial promotions are clear, fair and not misleading

Wednesday May 11 2022

The FCA regulates the communication and approval of financial promotions. That is, an invitation or inducement to enter into an agreement, the entry into or performance of which would constitute credit broking activity or providing relevant consumer credit, including high-cost lending.

It is unlawful for a person in the course of business to communicate a financial promotion unless (i) that person is an authorised person, (ii) the content of the communication is approved by an authorised person, or (iii) a relevant exemption applies (section 21 of the Financial Services and Markets Act 2000 (FSMA)).

The FCA expect authorised firms issuing and/or approving financial promotions in relation to consumer credit to ensure that all communications of financial promotions are clear, fair and not misleading and otherwise comply with the rules set out at CONC 3. This includes ensuring that those to whom a financial promotion is addressed, or at whom it is directed, understand the nature of the firm’s regulated activities.

The FCA letter is addressed to credit brokers and firms providing high-cost lending products but may be relevant to other firms involved in these activities.

Click on the above link for further information.