FCA ‘Dear CEO’ letter on misleading financial promotions

The FCA has published a ‘Dear CEO’ letter in which it provides clarity about the communication and approval of financial promotions by regulated and unregulated businesses.

The FCA has published the letter after it has recently become aware that firms have been issuing financial promotions which suggest or imply that all the activities they undertake are regulated by the FCA and/or the PRA when in fact they are not. This is likely to leave consumers unable to understand whether the products or services which are promoted are regulated by the FCA and/or PRA.

The FCA also reminds firms that –

  • a firm must not indicate or imply that it is regulated or otherwise supervised by the FCA in respect of business for which it is not regulated by the FCA; and
  • before a firm approves a financial promotion for communication by an unauthorised person, they must confirm that the promotion complies with the FCA rules on financial promotions.

FIN. Team