To help people make informed decisions to save, invest and borrow with confidence, the Financial Conduct Authority (FCA) is introducing new screening checks for companies that approve financial advertising。

Firms approved to conduct financial marketing for unregulated firms must demonstrate that they have the skills and expertise required to approve advertising.。Contractors must fully understand their products to ensure that promotions accurately and fairly balance risk and reward。

Previously, any company authorized by the FCA could approve promotions on behalf of companies not regulated by the FCA。This has resulted in a number of negative consequences, as companies approve ads for products they do not understand, as well as ads that are unclear, unfair or misleading.。

Companies will need to apply to the FCA between November 6, 2023 and February 6, 2024 to continue approving ads before the new rules take effect on February 7.。Companies that have submitted applications can continue to approve ads after this window until they receive an application decision。

Companies that approve financial promotions are also required to regularly report what they have signed and any related ads that have been de-approved to help the FCA crack down on rogue ads more quickly.。

Sarah Pritchard, FCA's executive director of marketing, said: "Companies need to make sure people are getting the right information at the right time so they can make informed decisions.。Faced with the rising cost of living, consumers have to make difficult decisions about their financial situation and how to pay for it, so this is more important than ever.。"

As part of its three-year strategy, the FCA is committed to developing and testing higher standards for financial services, giving consumers the confidence to make good financial decisions based on accurate and relevant information.。Consumer responsibility underscores this, and it strengthens consumer protection in financial services, meaning people should receive communications they can understand.。

These reforms build on the FCA's recent work to strengthen its rules on high-risk investment advertising, recommendations to revise guidelines for the online promotion of financial products and services on social media, and recommendations to take decisive action to eliminate misleading advertising.。Higher quality advertising and a more informed consumer base will help support a thriving market where people invest and save。

The Financial Services and Markets Act 2023 contains provisions for the creation of new gateways for authorized companies that wish to approve financial promotions by unauthorized companies。FCA launches consultation on new gateway in December 2022。