Context
The FCA is introducing new screening checks for firms that approve financial adverts. Firms approving financial marketing for unregulated firms (so financial marketing about the unregulated firm) will have to demonstrate they have the necessary skills and expertise to approve adverts. Those signing them off must understand the product, to ensure the promotion is accurate and fairly balances risk and reward.
Key points to note
This will not affect authorised firms (referred to as ‘authorised persons in the Policy Statement) that only approve:
- their own financial promotions for communication by an unauthorised person, (so financial promotions about the authorised firm);
- their own financial promotions that they intend to use and communicate themselves;
- the financial promotions of their Appointed Representatives (ARs) for the regulated activities they have accepted responsibility for; or
- the financial promotions of unauthorised persons within their corporate group.
Firms will need to apply to the FCA between 6 November 2023 and 6 February 2024 to continue approving adverts, effectively making a Variation of Permission application for the new ‘approver permission‘ ahead of the new rules coming into force on 7 February 2024. Firms who have submitted an application can continue to approve adverts after this window until they receive a decision on their application.
- Firms will be able to apply after the February deadline but wouldn’t be able to approve adverts before their application is determined, and new firms looking to enter the market will be able to apply as part of the normal application process for authorisation.
- There is a published webpage for applying to approve financial promotions for unauthorised persons. The page assists firms on how to apply to the FCA for permission to approve the financial promotions of unauthorised persons.
- Annex 2 of the Policy Statement sets out the question set that will be used in the VoP application form to add the ‘approver permission’.
Next actions
None – for information and awareness – but any firms wishing to apply for the new approver permission should do so within the three-month application window noted above (6 November 2023 to 6 February 2024).