FCA unveils enhanced screening checks for financial adverts
'By introducing these new checks, we will ensure people approving adverts have the right skills and understanding they need to do so.'
The regulator revealed today (12 September) it will introduce enhanced controls on such businesses to ensure regulated firms and their professionals have the «necessary skills and expertise to approve adverts».
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Prior to this, FCA-authorised companies were able to approve promotions on behalf of unregulated firms.
However, the watchdog noted the practice has caused harm to end investors in the past, as at times, the regulated businesses did not understand the promotions they were approving, resulting in unclear, unfair and/or misleading adverts.
As a result, if regulated companies wish to continue approving financial promotions from unregulated firms, they will need to apply to the FCA between 6 November 2023 and 6 February 2024, ahead of the 7 February 2024 deadline, when the new marketing rules will come into force.
The FCA explained companies will still be able to approve marketing promotions after the implementation date until a decision has been made on their application.
To help the FCA clamp down on rogue adverts, firms will also be required to regularly report on what they are signing off and on any concerning adverts they cancel approval for.
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Sarah Pritchard, executive director of markets at the FCA, said: «By introducing these new checks, we will ensure people approving adverts have the right skills and understanding they need to do so.
»Firms need to make sure people are equipped with the right information at the right time, so
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