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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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UK Financial Promotion Order: key exemptions and 2023–2024 amendments to high‑net‑worth and sophisticated investor regimes, with recipient‑, arrangement‑ and source‑based routes

Practice notes
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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 Note: The financial promotion regime—essentials—Financial promotion: controlled activities and controlled claims management activities...

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Web page updated on 22/05/2026

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