FCA slams financial promotion exemptions for HNW individuals

Regulator says the exemptions result in consumer harm

Isabel Baxter
clock • 2 min read

The Financial Conduct Authority (FCA) is pushing for a reform of the Financial Promotion Order exemptions for high-net-worth (HNW) individuals and ‘sophisticated’ investors.

In general, an individual or business cannot communicate a financial promotion unless the content is approved by a firm authorised by the FCA or Prudential Regulation Authority to carry on a regulated financial services activity. However, The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 includes several exemptions, including for those who are HNW individuals and ‘sophisticated' investors. FCA joint executive director of enforcement and market oversight Therese Chambers wrote to the Treasury Committee yesterday (6 December) stating that the regulator previou...

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