TITLE: Financial Conduct Authority Reviews Financial Promotion Approvers and Identifies Standards Gaps
BODY:
On May 27, 2026, the Financial Conduct Authority (FCA) published findings from a review of firms that approve financial promotions on behalf of unauthorised businesses, identifying significant gaps in consumer protection standards among some approvers.
The FCA assessed ten authorised firms that approve financial promotions for businesses not regulated by the FCA, including those in the buy now, pay later, crowdfunding, and corporate finance sectors. The review examined promotions approved since each firm's authorisation. The FCA found that the strongest performers applied the Consumer Duty from the outset of their approval processes, ensuring every promotion was accurate, clear, and targeted appropriately. However, the FCA identified concerning practices among weaker performers, including the approval of adverts containing unsubstantiated claims, allowing retail investors to view promotions intended for professional clients, and reliance on third-party templates without conducting proper independent checks.
Lucy Castledine, director of consumer investments at the FCA, said: "Consumers see these promotions daily—in social media feeds, online adverts, websites and apps. When approvers fail in their responsibilities, people can be misled into harmful financial decisions. Firms must make sure every promotion they sign off is fair, clear and not misleading."
As a direct result of the review, one firm has undertaken a remediation exercise and certain websites have been blocked to retail customers. Section 21 approvers—FCA-authorised firms with permission to approve financial promotions for unauthorised businesses—must ensure promotions comply with FCA rules to enable legal marketing to UK consumers. The rules governing this approval process came into force on February 7, 2024. The FCA will continue monitoring compliance and will take enforcement action against firms that fail to meet required standards.