Deadline to apply to approve financial promotions


INSIGHT
Published
Jan 26th '24
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In September the Financial Conduct Authority (FCA) confirmed the introduction of a new authorisations gateway for firms who approve financial promotions for unauthorised persons.

 

Under the new regime, those who approve financial promotions for unauthorised persons will require a specific permission from us, unless an exemption applies. This change will be reflected on the FCA Register for all Part 4A authorised persons.

 

Firms applying for this permission will have to demonstrate, among other things, that they have the necessary skills and expertise to approve promotions. Firms will also be required to report regularly to the FCA on their approval activity.

 

The initial application window for firms to apply for this new permission closes on 6 February 2024. The new legislative restriction comes into force on 7 February 2024.

 

To help firms prepare, the FCA has published information on applying to approve financial promotions.

 

Firms who submit an application on or before 6 February 2024 can continue to approve promotions until they receive a decision on their application. They will be subject to the new reporting requirements from 7 February 2024.

 

Firms that do not apply during this initial window will be subject to a restriction which will mean they cannot approve financial promotions for unauthorised persons with effect from 7 February 2024 (other than within the scope of an exemption).

 

Firms can still apply for this permission after 6 February 2024, but they will not be able to approve financial promotions unless and until their application has been granted.

 

Source: FCA

 

Need some promotional advice? If you want to understand more about how to make sure your marketing materials meet FCA standards, please click here.

 

 

Get advice

The regulatory regime around financial promotions is ultimately designed to protect all parties. It’s in everybody’s interest to follow the rules, both to protect clients from risky investments and prevent firms inadvertently becoming professional enablers and falling foul of the law.

 

This is a complex area so if you have any doubts about whether or not your promotion comes within an exemption, the safest option is always to get it approved by an authorised firm or get specialist advice.

 

In the first instance, you could contact us for general guidance.

 

If you are unsure about a particular case or scenario, you could consult the FCA’s Handbook or seek advice directly from an expert on financial promotions.

 

LS Consultancy is ideally placed to support firms of all sizes and types with this Financial Promotions review.

 

Need some promotional advice? If you want to understand more about how to make sure your marketing materials meet FCA standards, please click here.

 

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