The UK’s Financial Conduct Authority (FCA) recently published a policy statement (PS23/13), introducing a “gateway” for companies that approve the financial promotions of unauthorised firms. The policy statement supports the amendments made to the Financial Services and Markets Act 2000 (FSMA) by the newly enacted Financial Services and Markets Act 2023 (FSMA 2023).
According to insights provided by Katten Muchin Rosenman LLP, PS23/13 also stems from the FCA’s consultation paper (CP22/27) published in December 2022. The consultation paper detailed the proposed operation of the gateway and related issues.
The introduction of the gateway appears to be a crucial control measure by the FCA to regulate the endorsement of financial promotions by unauthorised firms. This can potentially provide a stricter and more regulated environment for financial promotions, ensuring that companies approve promotional activity by unauthorised firms only after completing the gateway’s mandated vetting process.
While the specifics of the gateway’s operation remain to be seen, it represents the FCA’s latest effort in tightening regulations around financial promotions, holding firms to account for the messages they endorse and convey to consumers in the market.