The FCA is consulting on strengthening its financial promotion rules for high risk investments including cryptoassets, and for authorised firms which approve and communicate financial promotions.
The proposals, which are a key element of the FCA’s Consumer Investments Strategy, will mean changes to:
- FCA’s classification of high risk investments;
- the consumer journey into high risk investments;
- strengthen the role of firms approving and communicating financial promotions; and
- apply FCA’s financial promotions rules to qualifying cryptoassets.
The consultation closes on 23 March 2022 and the FCA intends to publish a Policy Statement and final Handbook rules in the summer.
At this stage, the FCA intends to give firms 3 months from publishing the final rules to comply with the new requirements for the consumer journey and the new requirements for section 21 approvers. Any requirements relating to cryptoasset promotions will take effect from the date qualifying cryptoassets are brought within the financial promotion regime.