The consultation proposed to clarify cryptoassets as “Restricted Mass Market Investments”, allowing them to be mass marketed to UK consumers subject to certain restrictions. This would be in addition to the existing overarching requirement requiring financial promotions to be fair, clear and not misleading.
The restrictions proposed included:
- Clear risk warnings
- Banning incentives to invest
- Positive frictions
- Client categorisation requirements
- Appropriateness assessments
This policy statement follows the creation of the FSMA (Financial Promotion)(Amendment) Order 2023, which takes effect on 7 October. FCA has also reminded firms of its guidance consultation on cryptoasset financial promotions, and requests responses by 10 August.
The final rules are to be taken forward largely as proposed, and are expected to have effect from 8 October.