The Financial Conduct Authority has found in a supervisory review that some authorised firms approving financial promotions for unauthorised businesses are not doing enough to protect consumers. Weaknesses included approving adverts with unsubstantiated claims, allowing retail investors to see promotions intended for professional clients, and failing to carry out proper checks. By contrast, the strongest firms applied the Consumer Duty from the start of their approval processes and were better able to ensure promotions were accurate, clear and aimed at the right audience. The review assessed 10 authorised firms and sampled promotions approved since those firms were authorised, focusing on Buy Now Pay Later, crowdfunding and corporate finance businesses. It also identified cases where firms relied on third-party templates instead of conducting their own assessment. Following the FCA's work, one firm has already had to carry out a remediation exercise and some websites have been blocked to retail customers. The FCA said it will continue to monitor compliance and hold firms that fall short to account.
Financial Conduct Authority2026-05-27
Financial Conduct Authority review finds shortcomings in financial promotion approvals and prompts remediation
The Financial Conduct Authority’s supervisory review found some authorised firms approving financial promotions for unauthorised businesses are failing to protect consumers, including by approving unsubstantiated claims, exposing retail investors to promotions intended for professional clients and relying on third-party templates. The review of 10 firms, focused on Buy Now Pay Later, crowdfunding and corporate finance promotions, has led to one remediation exercise and blocking some websites to retail customers, while the strongest firms applied the Consumer Duty from the outset. The FCA will continue to monitor compliance and hold firms to account.