On 11 April 2019, the UK Financial Conduct authority published a ‘Dear CEO’ letter to firms approving financial promtions. This letter is aimed at firms approving financial promotions for unauthorised firms.
The FCA reminds firms:
– Before approving a financial promotion for an unauthorised firm, the authorised firm must ensure the promotion complies;
– Despite its earlier letter dated 9 January 2019, the FCA has found “a number of examples where it appears the due diligence carried out on a financial promotion may have fallen well short of the standard we expect”.
– The approver of a restricted financial promotion (ie one which can only be sent to certain persons) must ensure any restriction is complied with (and express reference is made to mini-bonds)
– Firms not complying are reminded of the FCA’s extensive enforcement toolkit.