Question: why should unauthorised firms be allowed to promote and sell their products at all in the UK?
Answer: we don’t know.
But there are many non‑compliant promotions being approved and then communicated by unauthorised firms to retail consumers resulting in harm because of inappropriate marketing and targeting.
Currently, any authorised person can generally approve financial promotions for
unauthorised firms. The gateway will require all firms wanting to continue to approve promotions having to ask the Financial Conduct Authority for permission first.
Whilst an improvement for consumer protection, this still does not address our question on why unauthorised firms sell their products and services in the UK.
Let’s use the forthcoming Financial Services and Markets Bill to change the legislation so that any firm wishing to sell or promote financial products and/or services in the UK must be authorised by the FCA.
Read our full response.
