Changes to the Financial Promotions Order (high net worth)


INSIGHT
Published
Mar 6th '24
Share
Facebook

The Financial Conduct Authority (FCA) and industry implemented the changes to the high net worth exemption by 31 January 2024 as required under the law.

 

These changes were taken forward after detailed consultation and recommendations made by the Treasury Select Committee in 2021 that the government should re-evaluate the appropriateness of the Financial Promotion Order exemptions.

 

The FCA will continue to work with the government on how the financial promotions regime can be strengthened to avoid consumer harm, while ensuring access to sustainable sources of investment for growing businesses.

 

As the FCA did ahead of the consultation, they would be happy to provide support as part of a detailed examination of the potential impact of any reversal.

 

The FCA has previously set out that the UK’s definition of a high net worth investor is an international outlier, with a far lower threshold than comparable jurisdictions.

 

In the last perimeter report, the FCA suggested the criteria for investors to be classified as ‘sophisticated’ should be tightened. This is to avoid the risk, which has occurred in many situations of investment fraud or misconduct, of ordinary investors self-classifying, often under pressure or through coaching, and buying risky investments that do not match their appetite or capacity for loss.

 

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.

 

Download: Financial promotion guide 

 

 

About us

The Compliance workload shows no signs of decreasing. An ever-growing list of requirements and regulatory changes makes the compliance role harder than ever.

 

When you face business or regulatory challenges, we provide solutions that are tailor-made to your needs with a view to releasing your energies to focus on your clients.

 

LS Consultancy offer a complete solution with a range of cost effective, regulatory compliance and marketing products and solutions including copy advice and copy development which are uniquely suited to supporting firms.

 

Explore our full range today.

 

Need A Regulatory Marketing Compliance Consultant? A Bit More About Us

 

Contact us

 

Call Us Today on 020 8087 2377 or send us an email.

 

FOLLOW US

Connect with us via social media and drop us a message from there. We’d love to hear from you and discuss how we can help.

 

Facebook | Instagram | LinkedIn | X (formally Twitter) | YouTube

 

Contact us