DP 21/1: Strengthening our financial promotion rules for high-risk investments and firms approving financial promotions

Open consultation: DP 21/1
29/04/2021
29/04/2021
Consultation closes
01/07/2021

We are publishing this Discussion Paper (DP) to get views on changes we can make to strengthen our financial promotion rules for high-risk investments, and for authorised firms which approve financial promotions.

Read DP 21/1

The DP seeks views on 3 areas where changes could be made to protect consumers from harm:

  • the classification of high-risk investments
  • the segmentation of the high-risk investment market
  • the responsibilities of firms which approve financial promotions.

The feedback to this DP will help to shape the changes we plan to consult on later in the year and to ensure they have the intended impact.

This DP follows our recent interventions to address harm from high-risk investments, including banning the mass-marketing of speculative illiquid securities and our new Investment Harms campaign.

Who this applies to:

  • consumers and consumer organisations
  • authorised firms which approve financial promotions for unauthorised persons (section 21 approvers), whether for high-risk investments or otherwise
  • issuers of non-mainstream pooled investments, speculative illiquid securities and non-readily realisable securities
  • investment-based crowdfunding (IBCF) platforms and other intermediaries distributing investments to consumers
  • peer-to-peer (P2P) platforms
  • trade bodies for the IBCF and P2P sectors
  • issuers of listed or exchange-traded securities, and trade bodies for these issuers
  • investment companies, and trade bodies for this sector
  • issuers of other types of investments
  • firms operating in the cryptoassets market
  • financial advisers

Next steps:

We are asking for comments by 1st July 2021.

Respond to the consultation

 

Page updates

05/05/2021: Information changed Closing date corrected