Please find the original FCA publication here.
Read the consultation paper here.
Why we are consulting
In July 2020, the Treasury consulted on a ‘Regulatory Framework for the Approval of Financial Promotions’. It subsequently confirmed the plan to introduce a new regulatory gateway for all authorised persons – under the Financial Services and Markets Act 2000 (FSMA) – wishing to approve financial promotions on behalf of unauthorised persons.
The Treasury has signalled its plan to create a transition period for existing authorised persons, enabling them to continue approving financial promotions until their applications have been determined.
We are consulting on the following proposals for the new gateway:
- how we assess applicants at the gateway
- the basis for our granting or refusal of applications
- a bi-annual reporting requirement for firms that are given permission to approve financial promotions
- a requirement that firms that are granted permission to approve financial promotions must notify us when they approve, or amend or withdraw approval of, a financial promotion, within 7 days of doing so
- not extending the compulsory jurisdiction of the Financial Ombudsman Service to the approval of financial promotions
- further consequential changes made to our non-Handbook guidance for firms that approve financial promotions for investments, and additional text on the Consumer Duty
Scope of the consultation
The proposals in this CP will affect authorised persons who approve, or intend to approve, financial promotions for unauthorised persons.
Based on the Treasury’s consultation response document, we do not expect the proposals in this CP to generally be relevant to authorised persons approving the financial promotions of their appointed representatives (ARs) or of unauthorised persons within their corporate group. We also do not expect them to apply where an authorised person approves their own financial promotions for onward communication by an unauthorised person.
We expect this consultation to be of interest to
- consumers and consumer organisations
- authorised persons which communicate financial promotions
- firms operating in the cryptoasset market
- applicants and prospective applicants for authorisation which may wish to approve financial promotions for unauthorised persons
- relevant trade bodies
- unauthorised persons that get their financial promotions approved by authorised persons
Respond to this consultation
Respond to this consultation paper by 7 February 2023.
Send any comments or enquiries to CP22-27@fca.org.uk.
Please find the original FCA publication here.
