Financial Promotion Order (FPO) meaning

Background to the regulation of cryptoasset promotions in the UK Following the establishment of the Cryptoassets Taskforce (CATF) in March 2018, by October 2018 the CATF had issued its final report. Chapter 4 considers the risks and potential advantages linked to cryptoassets. On financial promotions, the report observes that advertising, often directed at retail investors, is frequently neither fair nor clear and may mislead. Commonly, adverts: overstate the benefits; rarely flag volatility risks, the reality that consumers can both gain and lose their investment, and the absence of regulation; include cases where regulated firms market cryptoasset products without making clear that this aspect of their business is not regulated. After the report’s publication, the UK government began consulting on legislation to bring certain cryptoasset promotions within the Financial Services and Markets Act 2000 (FSMA 2000), and therefore under the Financial Conduct Authority’s (FCA) remit. In parallel, the FCA opened a consultation on the requirements that would apply to financial promotions...

Exemptions from the financial promotion restriction This Practice Note examines exemptions from the financial promotion restriction that are most pertinent to financial services practice. For broader detail on the restriction in general, see Practice Note: The financial promotion regime—essentials. The exemptions to the restriction fall into three categories and are contained in the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005, SI 2005/1529 (FPO). They are arranged by type of activity: provisions covering every controlled activity (FPO SI 2005/1529, Pt IV) provisions for deposits and insurance (FPO SI 2005/1529, Pt V) provisions for specified controlled activities, excluding deposit taking (FPO SI 2005/1529, Pt VI) provisions for controlled claims management activities (FPO SI 2005/1529, Pt VIA, arts 73A–73J) For guidance on the exemptions applying to all controlled activities, see Practice Note: Exemptions for all controlled activities; for guidance on deposits and insurance, see Practice Note: Exemptions for deposits and insurance; and for controlled claims management activities, see Practice...

Scope of this Practice Note This Practice Note outlines the exemptions from the financial promotion restriction most pertinent to corporate work. For detail on the restriction itself, see Practice Note: The financial promotion regime—essentials. The exemptions addressed here appear in Part VI of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, SI 2005/1529 (FPO), as amended, including by the Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018, SI 2018/1253, and the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019, SI 2019/632. They cover: transaction-led financial promotions company-focused financial promotions recipient-specific financial promotions A graphic summarises the exemptions within each of these three categories: Financial Promotion Order—groups of exemption. The FPO 2005, SI 2005/1529, sets out more than 70 exemptions available to those who are not PRA/FCA authorised. This Practice Note considers the carve-outs from the financial promotion restriction of particular relevance to corporate practice. For more information about...