HMT launches consultation on regulatory framework for approval of financial promotions

Released 20 July 2020

HM Treasury has launched a consultation on a regulatory gateway for authorised firms approving the financial promotions of unauthorised firms.

The current requirement for an authorised firm to approve the financial promotion of an unauthorised firm may not operate as a strong enough safeguard to ensure such financial promotions are compliant with FCA rules that they are fair, clear and not misleading.

In order to strengthen the FCA’s ability to ensure the approval of financial promotions operates effectively, the Government proposes to establish a regulatory ‘gateway’, which a firm must pass through before it is able to approve the financial promotions of unauthorised firms. Any firm wishing to approve the financial promotions of unauthorised firms would first need to obtain the consent of the FCA.

The consultation runs until 26 October 2020.

Further information can be found at https://www.gov.uk/government/consultations/regulatory-framework-for-approval-of-financial-promotions.

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