Consultation outcome

Regulatory Framework for Approval of Financial Promotions

From:
HM Treasury
Published
20 July 2020
Last updated
22 June 2021 — See all updates
This was published under the 2019 to 2022 Johnson Conservative government
This consultation has concluded

Read the full outcome

Regulatory Framework for Approval of Financial Promotions : Consultation Response

PDF, 251 KB, 23 pages

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Detail of outcome

This is the government’s response to the consultation on a regulatory gateway for authorised firms approving the financial promotions of unauthorised firms which ran from 20 July 2020 to 26 October 2020.

  • After carefully considering all responses, the government intends to bring forward legislation to implement a regulatory gateway when parliamentary time allows

  • The regulatory gateway will be implemented through the imposition of requirements (option 1 set out in the response document)

  • The government has also developed proposals to implement a transitional period allowing an orderly transition between the two regimes

Original consultation

Summary

Consultation on a regulatory gateway for authorised firms approving the financial promotions of unauthorised firms.

This consultation ran from
to

Consultation description

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. Currently, any authorised firm is able to approve any financial promotion of an unauthorised firm. There is no specific process through which a firm must be assessed as suitable and competent before it is able to approve the financial promotions of unauthorised firms.

In order to strengthen the FCA’s ability to ensure the approval of financial promotions operates effectively, in this consultation 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 government would be grateful for the views of stakeholders on the options set out in the consultation, and the questions set out in the consultation form. The government is looking for views from members of the public or industry, but would particularly welcome responses from retail consumers; authorised firms which have undertaken approvals of the financial promotions of unauthorised firms; and unauthorised firms which communicate financial promotions.

Documents

Regulatory Framework for Approval of Financial Promotions: consultation

PDF, 285 KB, 27 pages

Consultation responses on Regulatory Framework for Approval of Financial Promotions: form

MS Word Document, 126 KB

This file may not be suitable for users of assistive technology.

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email digital.communications@hmtreasury.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Updates to this page

Published 20 July 2020
Last updated 22 June 2021 + show all updates

  1. Consultation response published

  2. First published.

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