Your Solution to Financial Promotion Compliance
Discover the power of FinProm Pro – your ultimate solution for meticulously reviewing financial promotions. Say goodbye to costly mistakes and the looming threat of FCA intervention that could jeopardise your business.
With FinProm Pro, safeguard your success by ensuring compliance and unlocking the full potential of your financial promotions. Don’t let regulatory risks overshadow your business goals – choose FinProm Pro and pave the way for a secure and prosperous future.
FinProm Pro Services
Financial Promotion Reviews
Get comprehensive reviews of your financial promotions. We’ll provide a full accounting of rule. breaches, reference the appropriate guidance, and provide practical and understandable recommendations to put things right.
Regulator Responses
Are you in hot water with the regulator concerning your financial promotions? We’ll review any questions the regulator has and draft or advise on responses in a way that alleviates the FCA’s concerns and you get you back in the good books.
Advice and Guidance
Struggling to interpret or even locate the relevant financial promotion rules and guidance? We’ve got you covered. We’ll locate, educate, inform and keep you in the know. Compliance doesn’t need to be so hard, especially when you work with The FinProm Pro.
Affiliate Monitoring
Are you using affiliate-marketers to communicate your financial promotions? If so, your business is facing regulatory, business continuity and reputational risks. Improve your systems and controls. Keep your affiliates in line and compliant. How certain are you about reliance on affiliates?
Competitor Monitoring
There is a good chance your competitors aren’t using compliance financial promotions which could cost you business! Believe us, we’ve seen it time and time again. We’ll identify competitor financial promotions that are non-compliant and report them to the regulator. Let’s even the playing field.
Horizon Scanning
We’ll keep you updated about the FCA’s financial promotion news, Consultations, Finalised Guidance and Policy Statements that could impact your business. Stay ahead of the curve and don’t get caught on the back foot.
Financial Promotion Gateway Applications
Are you reviewing and approving financial promotions for unauthorised firms (firms not authorised by the FCA)? If so, you’re subject to Section 21 FSMA and it is highly likely you’ll need to apply to the FCA to become authorised for this activity. We’ll advise on and help draft the application and deal with any post-submission questions the regulator may have.
Find Out More About Our Services
Can’t find what you’re looking for? Contact us to find out more. We offer more than the advertised service and can assist with an array of FCA compliance requirements.
FCA Intervention Facts
+1398%
Between 2021 and 2022, there was a 1397.7% increase in the number of financial promotions that were amended or withdrawn by authorised firms following the FCA’s intervention.
75%
In Q3 2023, 75% of financial promotions reviewed by the FCA resulted from pro-active monitoring i.e., resources internally allocated by the FCA.
9052
The number of financial promotions that were withdrawn or amended by authorised firms due to the Financial Conduct Authority’s Intervention in Q1 to Q3 2023.
*FCA Financial Promotion Data 2020 to Q3 2023.
Case Study
Claims Management Company Caught Out!
What Happened?
A claims management firm was not disclosing on its website and social media promotions, that a consumer is not required to use its services to pursue a claim.
The promotions also failed to advise that it is possible for a consumer to present the claim themselves for free, either to the person against whom they wish to complain or to the relevant statutory ombudsman or the statutory compensation scheme.
In addition, the firm also used the term, ‘no win, no fee’ on its promotions without providing further details on its applicable fees.
Result
Following [The FCA’s] intervention, the firm withdrew non-compliant social media promotions and amended several promotions across multiple media platforms.
You’ll know the impact amendments to financial promotions can have on performance and engagement. It’s not good!
*FCA Financial Promotion Data for Q3 2023.
View some more examples of FCA interventions concerning financial promotions in different regulated sectors.
Why Take The Risk?
What’s the Worst That Could Happen?
VREQs
A VREQ or ‘Voluntary Application for Imposition of Requirements’ is essentially an invitation by the regulator to restrict your activities until the FCA is satisfied that the restriction can be lifted.
For financial promotions, this can include restricting the firm’s ability to communicate or approve financial promotions. Major business continuity risk! A VREQ will also appear against the firm’s name on the Financial Services Register which is accessible to consumers, business relationships and competitors.
OIREQs
An OIREQ or ‘Own Initiative Action for Imposition of Requirements’ is when the regulator imposes a restriction on your activities without extending an invitation to you, effectively forcing you to comply until the FCA is satisfied that the restriction can be lifted.
Alike with VREQs and financial promotions, this can include restricting the firm’s ability to communicate or approve financial promotions. A OIREQ will also appear against the firm’s name on the Financial Services Register which is accessible to consumers, business relationships and competitors.
Banning Powers
If the FCA believes a financial promotion is misleading, the regulator has legal powers to ban a financial promotion or prevent it from being used in the first place. The regulator also has the power to publish such information about a direction where appropriate and can also issue a press release. Reputational damage and negative publicity! Find out more about the FCA’s Banning Power.
Attestations
An attestation is a firm’s formal statement that it will take, or has taken, an action that the FCA requires. The FCA use attestations as a supervisory tool to ensure that regulated firms – and senior individuals within them – are clearly accountable for taking the actions the FCA requires, often without the FCA’s ongoing regulatory involvement. Find out more about Attestations.
Frequently Asked Questions
What are financial promotions?
Financial promotions are effectively ‘invitations’ or ‘inducements’ to engage in a regulated activity. If you are regulated by the Financial Conduct Authority and advertise your services as a regulated firm, you’re likely to be promoting financial promotions which must comply with the FCA’s Rules and Guidance. FCA Glossary Definition.
It doesn’t matter what platform you use to promote financial promotions. If you’re advertising your regulated services on Google, Facebook, Instagram, TikTok and so on, they are all financial promotions.
Can the FCA locate my company’s financial promotions?
Yes! The Financial Conduct Authority employs proactive monitoring measures to detect instances of non-compliant Financial Promotions. Various platforms, such as Google, TikTok, and Meta, render advertisements publicly accessible and searchable. This accessibility allows both consumers and competitors to scrutinise and potentially report Financial Promotions to the FCA. This happens more often than you’d expect!
What can the FCA do if my company’s financial promotions are non-compliant?
Based on the severity and scope of non-compliance, the Financial Conduct Authority has a range of powers at its disposal. And yes, they are used! These measures span from requesting the modification or withdrawal of your Financial Promotions to imposing voluntary or involuntary restrictions on your activities, thereby prohibiting the advertisement of your services until you can substantiate the adequacy of your systems and controls. This kind of action presents a significant business continuity risk that we’re sure you’d prefer to avoid! Why take the risk? Get financial promotion compliance right the first time round.
What is ‘stand-alone’ compliance?
All financial promotions must be ‘stand-alone’ compliant. For example, if you are advertising your FCA-regulated services on social media and that advertisement links to a website, both the social media advertisement and website must individually comply with the relevant Financial Promotion Rules and Guidance.
Contact Us
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Your Financial Promotion Professional 