Financial promotions gateway in force

How have the rules been tightened?

Previously, any authorised person was permitted to approve financial promotions for unauthorised persons, without requiring specific authorisation.

Since 7 February 2024, firms carrying out the regulated activity of approving financial promotions must be authorised for approver permission. To apply for approver permission for a specified of financial promotion, a firm must demonstrate the necessary skills and expertise to approve that kind of financial promotion.

On approving financial promotions, the firm must:

• assess whether the financial promotion of a product fairly represents the product being promoted in a way that is not misleading
• establish whether the promoted product is commercially feasible and reasonably capable of achieving what is being promoted
• consider Consumer Duty obligations in relation to the financial promotion

What if I want to continue to approve financial promotions for others?

Apply for authorisation

From 7 February authorised persons who wish to vary their authorisation to include approver permission may do so in the usual manner for variation of authorisation.

Reporting requirements

Firms which applied for approver permission before 7 February 2024 and are benefiting from the transitional regime have been subject to reporting requirements from 7 February.

For firms which are granted permission to approve financial promotions after 7 February 2024, the reporting requirements will commence on the date the permission is given.

Exceptions

The following activities are excepted from the new gateway:

• An authorised person approving their own financial promotions for communication by an unauthorised person
• An authorised person approving their appointed representatives’ (ARs) financial promotions
• An authorised person approving the financial promotions of unauthorised persons within their corporate group

How Eversheds Sutherland can help

We provide guidance to authorised individuals regarding financial promotions regulations and how to fulfil the necessary criteria when granting approvals for financial promotions by unauthorised parties, both in specific cases and within the broader context of financial services regulation.

Further reading on financial promotions

See our previous client briefings:

• The Financial Conduct Authority’s new regulatory gateway for approval of financial promotions
• UK’s FCA writes to cryptoasset firms marketing to UK consumers about new financial promotion rules