Proposals to strengthen protections around promotion of financial products and cryptoassets published
Consumers of financial products and cryptoassets are set to get better protections against misleading and inadequate promotions in proposals published today by City Minister John Glen.
Misleading advertising or a lack of suitable information can expose potential investors to a level of risk they are not prepared for. To help combat this, two consultations have been published today which propose both increasing the oversight of financial promotions issued by unauthorised firms, and bringing the promotion of certain types of cryptoassets under Financial Conduct Authority (FCA) regulation for the first time.
The Economic Secretary to the Treasury & City Minister, John Glen said:
It’s important that people can understand the financial products they see promoted. If adverts by unauthorised firms are misleading, or don’t fully outline the risks, then people can end up losing money. That’s why we want to put more protections in place around such financial promotions, including the promotion of cryptoassets, while continuing to ensure people have access to a wide range of products on the market.
Currently, if an unauthorised firm wants to promote a particular financial product, they need to get that promotion approved by any authorised firm. But with the variety and vast quantity of products being offered on the market today, the government believes that this no longer provides a strong enough safeguard. Today’s proposals would mean that authorised firms will now have to obtain specific FCA consent to approve the financial promotions of unauthorised firms. This would mean the FCA can have better oversight of those firms which would help ensure such promotions are clear, fair, and not misleading.
The promotion of cryptoassets is currently unregulated, but their proliferation, and the fact they are often targeted towards retail investors, underscores the importance of promotions being candid about the risks involved. To ensure this, the government proposes to expand the perimeter of the financial promotions regime to include certain types of cryptoasset. This would mean that their promotion would be held to the same high standards for fairness, clarity and accuracy that apply to traditional financial services promotions. Both consultations will run from 20 July until 25 October.
The consultations are available here:
Latest News from
Billions of pounds of support helps businesses up and down the country19/01/2021 15:20:00
Businesses in all regions and nations of the UK have benefitted from billions of pounds in government-backed loans, according to new figures released yesterday.
UK Government helps more than 90,000 businesses in Scotland19/01/2021 13:38:00
Businesses in Scotland benefitted from more than £3.4 billion of UK Government-backed loans to protect and support jobs across the region.
UK Government helps more than 57,000 businesses in Wales19/01/2021 11:05:00
Businesses in Wales have benefitted from more than £2 billion in UK Government-backed loans to protect and support jobs.
Government safeguards vital ferry services15/01/2021 13:20:00
Vital ferry links between the Isle of Wight and the mainland have been safeguarded with an additional £6.5 million of government support to ensure they can continue to run through the crisis, the Chief Secretary announced today, 15 January.
Economic Update speech12/01/2021 15:20:00
The Chancellor of the Exchequer yesterday provided an update on the economy and comprehensive economic plan.
£4.6 billion in new lockdown grants to support businesses and protect jobs05/01/2021 13:20:00
Businesses in the retail, hospitality and leisure sectors are to receive a one-off grant worth up to £9,000, the Chancellor has announced.
Tampon tax abolished from 1st January04/01/2021 09:25:00
The ‘tampon tax’ has been abolished - with a zero rate of VAT applying to women’s sanitary products from 1 January 2021
Extra £800 million to support Scotland, Wales and Northern Ireland through Covid-19 this year24/12/2020 12:10:00
New funding of £800 million is being guaranteed for the devolved administrations in Scotland, Wales and Northern Ireland to support people, businesses and public services with the ongoing impact of Covid-19.