FCA clamps down on high-risk investment advertisements

Stronger rules to help tackle misleading adverts that encourage investment in high-risk products have been finalised by the FCA.

Under the new rules, firms approving and issuing marketing must have “appropriate expertise”, the regulator stated, while firms marketing some types of high-risk investments will need to conduct better checks to ensure consumers and their investments are well matched.

Firms also need to use clearer risk warnings while incentives to invest, such as “refer a friend bonuses”, are now banned.

As part of its Consumer Investments Strategy, the FCA stated its intention to reduce the number of people who are investing in high-risk products that do not reflect their risk appetite. This follows concerns that a significant number of people who invest in high-risk products do not view losing money as a risk of investing, and invest without understanding the risks involved.

In the last year, the FCA has intervened in significantly more financial promotions to prevent harm. In the year to the end of July 2022, 4,226 adverts were amended or withdrawn after intervention from the FCA.

“We want people to be able to invest with confidence, understand the risks involved, and get the investments that are right for them which reflect their appetite for risk,” commented FCA executive director, markets, Sarah Pritchard.

“Our new simplified risk warnings are designed to help consumers better understand the risks, albeit firms have a significant role to play too. Where we see products being marketed that don’t contain the right risk warnings or are unclear, unfair or misleading, we will act.

“This is even more important now because increases in the cost of living could prompt people to chase higher investment returns which may prove risky.”

However, the FCA confirmed that the new rules will not apply to cryptoasset promotions. Once the government confirms in legislation how crypto marketing will be brought into the FCA’s remit, the regulator will publish final rules on the promotion of qualifying cryptoassets.

The FCA did indicated that these rules are likely to follow the same approach as those for other high-risk investments.

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.