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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....

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FPO 2005 Part V (UK): Deposits and General Insurance Financial Promotion Exemptions—Real‑Time/Non‑Real‑Time, Prescribed Information, Reinsurance/Large Risks, and FCA Compliance Pitfalls

Practice notes
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Scope of this PrACTice Note

The exemptions from the Financial promotion restriction are set out in the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, SI 2005/1529 (the FPO), as updated from time to time (for example by the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019, SI 2019/632). For further information on the financial promotion restriction, see Practice Note: The financial promotion regime—essentials. The FPO carve-outs extend to communications concerning all forms of controlled activity. The exemptions are organised into four categories:

  • provisions relevant to all controlled activities (Pt IV)
  • provisions addressing Deposits and insurance (Pt V)
  • provisions for certain controlled activities (Pt VI)
  • provisions for controlled claims management activities (Pt VIA)

This Practice Note considers the exemptions that apply to communications relating to deposits and contracts of insurance other than life policies. These exemptions can be combined with those for all controlled activities (FPO, SI 2005/1529, Pt IV, ss 12–20C)...

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Web page updated on 21/05/2026

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