FCA consults on clarifications to high-risk investment retail ban

FCA’s latest quarterly consultation makes corrections and clarifications to various rules, and, also consults on clarifying the scope of the ban on offering retail clients incentives to invest in high risk investments.  It proposes to clarify that the ban applies to any incentives offered to retail clients as part of a financial promotion relating to high risk investments, even when there is no requirement to invest to get the benefit. The ban also applies regardless of the rationale for offering the incentive. However, it intends to exempt from the ban an incentive offered with the sole purpose of encouraging clients to switch platforms. Finally, it proposes some definitions to clarify some of the factors that it considers characterise an incentive that falls within the scope of the ban. FCA asks for comment by 10 July.

Emma Radmore