Did you know that the FCA has published a consultation paper and press release setting out how it proposes to operate a new authorisations gateway for firms wanting to continue approving financial promotions for unauthorised persons.
Under the current legislation, any FCA-authorised firm is allowed to approve financial promotions on behalf of other firms that are not authorised by the regulator. However, changes being introduced by Parliament will require authorised firms to undergo new screening checks before they are allowed to approve financial promotions.
In July 2020, the UK Treasury consulted on a ‘Regulatory Framework for the Approval of Financial Promotions'. It confirmed a plan to introduce a new regulatory gateway for all authorised persons – under the Financial Services and Markets Act 2000 (FSMA) – wishing to approve financial promotions on behalf of unauthorised persons.
Now the FCA is.consulting on the following proposals for the new gateway:
how it can assess applicants at the gateway
the basis for the FCA granting or refusing applications
a bi-annual reporting requirement for firms that are given permission to approve financial promotions
a requirement that firms that are granted permission to approve financial promotions must notify the FCA when it approves, or amend or withdraw approval of, a financial promotion, within 7 days of doing so
It should be noted that the proposals will affect authorised persons who approve, or intend to approve, financial promotions for unauthorised persons.
Who does this apply to?
You should respond if you fall under the following:
consumers and consumer organisations
authorised persons which communicate financial promotions
firms operating in the cryptoasset market
applicants and prospective applicants for authorisation which may wish to approve financial promotions for unauthorised persons
relevant trade bodies
unauthorised persons that get their financial promotions approved by authorised persons
What can you do
You can already respond to the consultation on or before 7 February 2023.
You can also send any comments or enquiries to CP22email@example.com.