Following its ‘Dear CEO’ letter, published on 9 January 2019, the FCA has reminded firms involved in the approval of financial promotions for unauthorised persons of their obligations when doing so.
The FCA stated that despite its letter, it has identified a number of examples where it appears the due diligence carried out on a financial promotion may have fallen well short of the standard it expects.
In addition, the FCA reminds firms that:
- before a firm approves a financial promotion for communication by an unauthorised person, it must confirm that the promotion complies with the financial promotion rules;
- if at any time they become aware that the financial promotion no longer complies with the rules, it must withdraw its approval;
- a firm that communicates or approves a financial promotion must have put in place adequate systems and controls, or policies and procedures; and
- they must ensure that information presented is accurate and always gives a fair and prominent indication of any relevant risks when referencing any potential benefits.