The FCA has arrived: what does it mean for your Financial Promotions?
As of the first of April, the Financial Conduct Authority opened its doors as the UK’s financial service regulator.
But in terms of compliance, what does the changeover from FSA to FCA mean to you and your business with regard to Financial Promotions?
Fortunately, there has been no great sudden upheaval in policy. The FCA hews closely to the work of its predecessor in its closing days. A comparison of the FSA and FCA handbooks reveal no great changes, with one body effectively segueing into the next. So, provided you were working within the guidelines of the FSA, you’ll be pretty safe under the FCA.
A notable development is that the new body will have more powers of intervention than the old. Its temporary product intervention rules mean that, where a “significant risk to consumers” has been identified, the FCA may “restrict the use of certain product features, requiring that a product not be promoted to some or all types of customers, or – in the most serious cases – requiring that a product not be sold altogether.”
Martin Wheatley, chief executive of the FCA, said:
“The creation of the FCA is our opportunity to reset conduct standards. This power, along with our other new powers, helps define how we will regulate going forward.
“We know that some in the industry are concerned about us using this power too hastily; I want to be clear that we know proportionate judgement is needed, and that is what we will exercise. I do not expect us to use this power frequently, but both industry and consumers need to be clear that we will not hesitate to use these powers where we have serious concerns.”
This makes it more important than ever to be sure that your marketing schemes and financial promotions are FCA compliant.
How can you ensure that the FCA see no reason to bring their temporary product intervention rules to bear on your firm?
The simple answer is to ensure that your marketing campaign is being managed by a firm with experience in the financial services industry. You need to employ a firm that not only understood the rules and guidelines laid out in the FSA Handbook, but who also have taken the time and the effort to get familiar with the new rules and guidelines issued by the FCA.
In short, when you are planning an online marketing campaign for your services, you need a firm like Market Financial.
We have years of experience in digital marketing for the financial services sector and continue to keep our finger on the pulse; so rather than getting caught out now that the new FCA regulations have come into play, what not get ahead of the game and contact us today?
For more information from how Market Financial can get the most out of your marketing spend, contact us here.