The FCA has overhauled financial promotion rules over the past two years. If you’re an authorised firm - or you approve promotions for others - these changes affect you.
Here’s what’s happened, who’s caught, and what you need to do about it.
What counts as a financial promotion?
Any communication that invites or induces someone to engage in financial activity. That includes:
- Website content
- Social media posts
- Emails and newsletters
- Brochures and flyers
- Google ads
- Even a WhatsApp message to a client
If it could persuade someone to buy a financial product or service, it’s probably a promotion.
What’s changed?
Consumer Duty (July 2023)
The big one. Every promotion must now support good customer outcomes. That means:
- Clear, not clever - no hiding fees in small print
- Fair value - if you can’t demonstrate it, don’t promote it
- Right audience - targeting must match who the product suits
- No pressure tactics - urgency and scarcity claims under scrutiny
The FCA has made clear they’ll look at promotions as evidence of whether firms are meeting Consumer Duty. A misleading ad isn’t just a promotion breach anymore - it’s a Duty breach.
High-risk investments (2023-2024)
Stricter rules for anything the FCA considers “high risk”:
- Personalised risk warnings - generic warnings no longer enough
- Client categorisation - must classify investors before showing promotions
- Cooling-off periods - time to reconsider before committing
- Banned incentives - no “refer a friend” bonuses, no new customer offers
Applies to: speculative illiquid securities, peer-to-peer lending, certain crowdfunding.
Crypto and digital assets (October 2023)
Crypto promotions now fall under FCA rules. This caught a lot of firms off guard.
- Must be issued or approved by an authorised firm
- Prominent risk warnings required
- No misleading claims about returns
- Cooling-off period for first-time investors
Even if you’re not in crypto, if you’ve ever mentioned digital assets in marketing, check your content.
The s21 Gateway (February 2024)
Previously, any authorised firm could approve promotions for unauthorised firms under s21 of FSMA.
Now you need specific FCA permission to do this. The “gateway” restricts who can approve others’ promotions.
If you’re a principal firm approving AR promotions: you’re likely fine - ARs aren’t unauthorised.
If you’ve been approving promotions for third parties outside your AR network: check whether you have the right permission.
Who’s affected?
Every authorised firm - Consumer Duty applies across the board.
Investment firms - high-risk investment rules if you deal in speculative products.
Anyone mentioning crypto - even in passing.
Principal firms - responsible for AR promotions as well as your own.
s21 approvers - need gateway permission or must stop approving.
What you need to do
1. Audit your existing promotions
Look at everything currently live:
- Website pages
- Social media (including old posts)
- Email templates
- Brochures, one-pagers, pitch decks
- Google/Meta ads
Check each one against the new standards.
2. Update your approval process
Before any promotion goes live:
- Who reviews it for compliance?
- Is there a clear sign-off trail?
- How do you document the approval?
The FCA expects a robust process, not a quick skim before posting.
3. Train your team
Marketing, sales, advisers - anyone who communicates with clients needs to understand:
- What counts as a promotion
- What the rules require
- When to escalate for review
4. Monitor ongoing
Promotions aren’t “set and forget”:
- Social posts from staff
- Third-party content (affiliates, introducers)
- AR promotions if you’re a principal
- Website changes
You need a system to catch issues before the FCA does.
What happens if you get it wrong?
The FCA isn’t messing about. Recent enforcement includes:
- Fines in the millions for misleading promotions
- Banning orders for individuals
- Requirements to contact affected customers
- Forced withdrawal of products
And under Consumer Duty, a promotion breach can trigger wider questions about your firm’s culture and governance.
How Merrin helps
Merrin’s financial promotions module gives you:
- AI-powered review - flags potential issues before you publish
- Approval workflow - clear sign-off with full audit trail
- Centralised library - every promotion tracked and searchable
- AR oversight - if you’re a principal, manage network promotions in one place
No more email chains. No more “I thought you’d approved it.” Everything logged, everything traceable.
Need help getting your promotions compliant? Get in touch to see how Merrin can help.