Financial Promotions

Course Overview:

This interactive course provides participants with a thorough and effective introduction to the FCA’s Financial Promotions regime.

The course provides participants with a comprehensive overview of the FCA approach and how it applies in practice. It considers new media, prominence, image advertising, as well as good and bad practice in relation to financial promotions, including exceptions to the rules. Finally it and points out some common pitfalls to be avoided.

Learning is supplemented by FCA case studies and discussion of the FCA approach generally, both of which are designed to cement learning and explore some complex and subtle issues in a meaningful way.

Course Content:

Background to The Regime

• Financial Services & Markets Act 2000, s.21 – Application and Scope
• The Financial Promotions Order 2005, PERG 8
• The FCA’s Statutory Objectives.
• Principles Based Regulation
• Treating Customers Fairly
• Principles for Business
• Clear, fair & not misleading
• What is a Financial Promotion

What is a Financial Promotion

• Definition
• What is “Investment Activity”
• Media Types – no boundaries – any can be used
• Types of financial Promotion
• Key Issues to Understand

The “Rules”

• How the FCA Regulates
• Who is affected
• Eligible counterparties
• Scope and application of rule: retail and non retail financial promotions.
• Fair, clear and not misleading communications
• Fair, clear and not misleading financial promotions
• Retail clients
• Past, Simulated & Future Performance Data
• Direct Offers
• Cold Calling
• Approving Financial Promotions

Exceptions to the Rules

• Authorised firms – MiFID and non-MiFID Business
• The Financial Promotions Order 2005
• Promotions to high net worth individuals
• Promotions to sophisticated investors
• Unregulated Collective Investment Schemes

FCA Regulation of Financial Promotions

• Methodology
• Reviewing, investigating, assessing
• What to expect on a FCA visit
• FCA’s approach to non compliant promotions
• Thematic Reviews
• Financial Promotions Using New Media
• Website Promotions
• Putting together a Financial Promotion
• Common Problems with FP’s
• Financial Promotions “Check lists”

Record Keeping

• Recording communications
• Time periods
• FP records requirements

Financial Promotions Using New Media

• Definitions – Facebook, Twitter, Web, Blogs, Phone Applications
• Web Based
• Sponsored Links
• Image Advertising
• Approval Process for new Media
• Going Forward

Specific FP Issues

• Talking to clients over the phone
• Digital Adverts
• Space issues. Image advert or Financial Promotion
• The Customer “journey”
• Recommended “default positions”

PRACTIAL EXERCISE: FCA Case Studies on Financial Promotions