2 half-days with case study examples – this course can be adapted to different types of business
1: Introduction
Promotions beyond the FCA rules – Codes of Advertising Practice, law, good taste
What is a promotion and the extent to which it matters?
Financial Services and Markets Act, section 21 promotion prohibition
Financial Promotion Amendment Order 2023 and the extension of investments to cover qualifying cryptoassets
Extension of firm to include registered cryptoasset businesses but not electronic money or payment services businesses
Non-promotional communications and image adverts
Some exemptions from parts of the rulebook in the Financial Promotions Order
Removal of HNW and self-certified sophisticated investor exemptions
Finding the rulebook – COBS 4.12A – restricted mass-market investments
FG 24/1 on social media
The FCA Principles
The effect of rule breaches – punishments in FSMA for breaching the rules
2: The Rulebook
What do the conduct of business rules apply to?
Clear, fair and not misleading in COBS 4 and the ASA Codes
Compulsory risk warnings and risk summaries – generally and for website and other digital media
Risk disclosure more generally prominence & font-size rule
Restrictions on incentives for cryptoasset promotions
Rule against unfair comparisons
Rules and guidance on specified expressions
Tax
Making promotions identifiable as such
Naming the firm, the regulator and the applicable compensation scheme
Past, simulated and future performance
Direct offers for cryptoasset promotions – cooling off, personalised risk warnings, categorisation and appropriateness testing
3. Mainstream issues in Digital media and promotions
Social media – FG 24/1
Pay-per-click and other sponsored links
Websites and disclosing how to complain
Unsolicited e-mail
4. Systems and controls
Sign-off procedures
Risk Management
The Compliance function
Approval of promotions for others (if relevant)