Abi Reilly: 'Flawed' financial promotion rules must change

FCA letter raises important questions

clock • 5 min read

Are current financial promotions rules truly protecting consumers? Abi Reilly says the current approach is flawed and grey areas leave the rules open to interpretation...

The Financial Conduct Authority's (FCA) recent letter to the House of Commons Work and Pensions Committee exposes flaws in our approach to financial promotions regulation and grey areas in how the rules are defined. The Financial Services and Markets Act 2000 states that only a firm authorised by the FCA may issue or approve a financial promotion. However, there are exemptions within the Financial Promotions Order (FPO) that allow unauthorised firms to issue promotions in specific circumstances. Financial promotions made to high net worth individuals and sophisticated investors are su...

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