FCA: Clamps down on marketing of high-risk investments to consumers
- FCA has finalised stronger rules to help tackle misleading adverts that encourage investing in high-risk products
- Under the stronger rules, firms approving and issuing marketing must have appropriate expertise
- Firms marketing some types of high-risk investments will need to conduct better checks to ensure consumers
- Firms also need to use clearer and more prominent risk warnings and certain incentives to invest, such as ‘refer a friend bonuses’
- This follows concerns that a significant number of people who invest in high-risk products
- These new rules build upon the more assertive and interventionist approach to tackling poor financial promotions
