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18 May 2022

Please find the official publication from the FCA here.

Dear CEO,

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

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))
.

We 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.

Who this letter applies to

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

To continue reading, please find the official publication from the FCA here.

By David Petty

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