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New restrictions on the financial promotions of crypto assets

Updated: May 18, 2022

The Financial Conduct Authority (FCA) has launched a consultation paper (CP22/2) on financial promotion rules for high-risk investments, including crypto assets.

The FCA wants to ensure firms that approve and communicate financial marketing have relevant expertise and understanding of the investments being offered, improve risk warnings on ads and ban incentives to invest, for example, new joiner or refer-a-friend bonuses.

Points to Note from the FCA

  • it will require service providers in respect of qualifying crypto-assets to have their financial promotions to be approved by a regulated financial services firm (unless they are authorised themselves)

  • communications will need to comply with certain FCA rules; for example, they must be fair, clear and not misleading

  • rules will apply in various respects for high-risk investments such as crypto assets

  • rules will apply to any in-scope promotion capable of having an effect in the UK, even where it is communicated by an overseas person