Britain tightens safeguards on financial promotions. On Tuesday, the United Kingdom’s Financial Conduct Authority said that beginning in February, it would implement stricter restrictions on how financial advertisements are permitted to clamp down on “harmful” advertising.
Until now, firms that are regulated by the Financial Conduct Authority (FCA) could accept financial advertisements posted by companies that are not regulated.
According to a statement released by the Financial Conduct Authority (FCA), “This has caused harm, with firms approving advertisements for products they don’t understand, as well as advertisements that are unclear, unfair, or misleading.”
According to the Financial Conduct Authority (FCA), businesses that want to continue authorizing marketing for unregulated companies must show that they possess the relevant skills and experience.
Beginning in November, regulated businesses must start the application process with the watchdog to continue having advertisements approved before the new regulations go into effect on February 7.
“Firms approving financial promotions will also be required to report regularly on what they sign off and on any concerning advertisements they cancel approval for,” the watchdog said. This will allow the FCA to act quicker to clamp down on deceptive advertisements.
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