Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Financial promotion definition

What does Financial promotion mean? A financial promotion is any communication made in the course of business that invites or persuades a person to engage in investment activity, such as buying or selling investments, opening investment accounts or subscribing to investment services. In the UK, the term and its restriction are set by the financial services and markets act 2000 (FSMA), especially section 21, and detailed in the Financial Promotion Order 2005 (FPO) and FCA rules. A person who is not authorised by the FCA must not communicate a financial promotion unless an authorised firm has approved it or an FPO exemption applies....

Financial promotion breaches under FSMA 2000: offences, unenforceability, FCA/PRA intervention, injunctions, restitution and other sanctions (including for cryptoasset registered persons)

Published by a LexisNexis Financial Services expert

Practice notes

What is the Financial promotion restriction?

Under section 21 of the Financial Services and Markets Act 2000 (FSMA 2000), a person (A) must not, in the course of business, issue or cause to be issued any invitation or inducement to engage in investment activity. This covers entering into, or offering to enter into, an agreement where the making or performance by either party amounts to a controlled activity, as well as exercising rights granted by a controlled investment to acquire a controlled investment. For more about the restriction, see Practice Note: The financial promotion regime—essentials.

What are the consequences for breaching of the financial promotion restriction?

If the restriction is breached, an offence is committed and the person is liable:

on summary conviction, to imprisonment of up to six months or a fine up to the statutory maximum, or both, or
on conviction on indictment, to imprisonment of up to two years or an unlimited fine, or both.

For more on the statutory maximum, see Practice Note: Fines imposed following criminal conviction...

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Web page updated on 21/05/2026

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