The Financial Conduct Authority (FCA) has recently published material in respect of financial promotions, re-emphasising the fact that marketing, advertising and customer communications remain high on the FCA's agenda.

Introduction 

Financial promotions are often one of the key indicators to customers as to their expectations of a particular product and the regulator is keen to ensure that firms deliver consistently fair outcomes for their customers.

In recent months the FCA published a reminder to motor finance firms of the ir advertising obligations under CONC 3 and have also published a consultation paper on extending the Principles for Business (PRIN) and financial promotions rules under the Banking: Conduct of Business Sourcebook (BCOBS) to payment services firms. Even though you may not be in the sectors covered above, they still serve as a useful reminder of:

• the definition of a financial promotion is wider than advertising;
• the requirements for financial promotions are channel and media neutral, so they apply equally to social media posts; website banners; press, TV and radios ads; and posters; and
• the risk needs to be managed across the whole of the firm and the responsibility does not sit solely with legal, compliance and/or marketing functions.