10 Financial Promotions—Regulating Marketing Material

Subject(s):

Financial Services and Markets Act 2000 — Regulated activities

This chapter considers the regulation of financial promotions. The promotion of marketing material for financial products and services regulated under the Financial Services and Markets Act (FSMA) 2000 is restricted. Section 21 FSMA dictates that only authorised persons may issue marketing material, unless an authorised person has approved the material and accepted responsibility for its contents, or the material falls within an exclusion prescribed by the Financial Promotions Order (FPO). This chapter explains the elements of the restriction: the meaning of terms such as ‘communicate’, ‘invitation’, ‘inducement’, ‘controlled investments’, and ‘controlled activities’. The offence of contravening the restriction, and its consequences, are reviewed. The exclusions from the restriction contained in the FPO are considered. The Financial Conduct Authority’s rules and policy on financial promotions (contained in COBS 4) are also explained.