FCA cracks down on high-risk investment adverts

Stronger rules

Jenna Brown
clock • 3 min read

The Financial Conduct Authority (FCA) has clamped down on misleading adverts that encourage investing in high-risk products.

Its finalised rules, released today, state firms approving and issuing marketing must have "appropriate expertise". Firms marketing some types of high-risk investments will also need to conduct "better checks to ensure consumers and their investments are well matched".  The regulator also said firms need to use "clearer and more prominent" risk warnings and certain incentives to invest, such as ‘refer a friend bonuses', have been banned.  The FCA said the move was part of its Consumer Investments Strategy, which aims to reduce the number of people who are investing in high-risk produc...

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