CLLS considers Fin Prom onshoring

The City of London Law Society has published a letter written to the Treasury in July expressing concerns about how the “onshoring” of the Financial Promotion Order post-Brexit has affected the exemptions applicable to promotions that relate to “relevant markets”.  Because the UK based markets were no longer included in the definition, it means that the FPO exemptions for communications such as those permitted by the rules of relevant markets, or in connection with admission to such markets do not actually apply to UK markets.  As a result, many people are likely inadvertently to have breached the financial promotion restriction because nobody realised that the changes would have this effect.  Moreover, the CLLS understands that Treasury did not intend to create this effect, hence its not having consulted on any proposal to remove UK markets from the scope of the exemptions. CLLS was therefore strongly of the view that Treasury should specify that the restriction does not apply to any promotions made in connection with UK relevant markets from 31 December 2020 to 13 October 2021 (when legislation correcting the error came into force).

Emma Radmore