FCA review puts financial promotion approvals under the spotlight

The FCA has warned that financial promotion approvals are falling short, after a review found weaknesses in how some authorised firms sign off promotions for unauthorised businesses. The review focused on firms approving promotions in sectors including Buy Now Pay Later, crowdfunding and corporate finance, and highlighted concerns around unsupported claims, poor audience controls and over-reliance on templates.

The regulator found that the strongest firms were applying Consumer Duty principles from the start of their approval process, helping to make sure promotions were accurate, clear and reached the right audience. However, it also found examples of adverts with unsubstantiated claims, retail investors being able to see promotions intended for professional clients, and firms relying on third-party templates rather than carrying out proper checks themselves.

The impact is already being felt, with the FCA confirming that some websites have been blocked to retail customers and one firm has been required to carry out remediation. For businesses, this underlines the need to ensure that any financial promotions are compliant before they go live. Having financial promotions reviewed by a firm with the correct FCA approver permission is one way to achieve this where campaigns involve regulated products, investment opportunities or consumer-facing finance.

Why this matters for businesses

For businesses operating in fintech, investment, crowdfunding, consumer credit or related sectors, this is a clear reminder that financial promotions are not simply a marketing issue; they can create regulatory, operational and reputational risk if they are not handled properly.

A product launch, fundraising campaign, investor update or customer acquisition push may depend on getting promotional materials approved quickly. But speed should not come at the expense of accuracy, evidence or audience controls. Claims must be fair, clear and not misleading, and promotions intended for professional investors should not be accessible to retail consumers unless the right safeguards are in place.

This is particularly important for unauthorised businesses that rely on authorised firms to approve their promotions. The FCA’s review suggests businesses should be ready to provide clearer evidence, stronger audience controls and a better record of how each promotion has been checked before it goes live.

How businesses can reduce risk

Businesses should review their financial promotion processes and consider:

• checking all live promotions, including website pages, landing pages, investor materials, social media posts, paid ads, emails and brochures.
• making sure claims about returns, risk, performance, security, speed or approval can be supported by evidence.
• avoiding vague or overconfident wording that could give customers or investors the wrong impression.
• making risk warnings clear, prominent and close to the relevant claim.
• reviewing who can see each promotion, particularly where content is aimed at professional investors, high-net-worth individuals or sophisticated investors.
• checking website gating, investor self-certification, email segmentation and paid media targeting.
• keeping an audit trail showing who reviewed each promotion, what evidence was checked and when approval was given.
• involving legal and compliance teams early in the marketing process and not waiting until final sign-off.

What's next?

Financial promotion compliance should be built into campaigns from the start. Businesses that take early advice, keep clear records and challenge their own marketing claims will be in a stronger position to promote their services confidently and responsibly.

Our financial regulation solicitors can work with businesses early in the campaign process to help them understand when marketing may count as a financial promotion, review materials before they go live and put practical approval processes in place.