View more on these topics

FCA warns firms again how ‘seriously’ it takes misleading advertisements

The FCA has written again to regulated firms about “how seriously” it treats misleading promotion of unauthorized retail investments.

In a Dear CEO letter from yesterday, the FCA chief executive Andrew Bailey said that despite FCA’s letter from 9 January, the regulator has identified a number of examples “where it appears the due diligence carried out on a financial promotion may have fallen well short of the standard we expect.”

This comes at a time, when the FCA is under spotlight for its possible regulatory failings in overseeing a collapsed mini-bond issuer London and Finance Capital, which led to 11,500 retail investors losing over £237m.

The firm collapsed after the FCA ordered it to withdraw its promotional material this January. The regulator deemed the advertising unclear, unfair and misleading.

Also because of “undue prominence given to the firm’s FCA authorisation despite the bonds not being regulated or having FSCS protection.”

The regulator said that while the LFC’s website disclosed that the bonds were unregulated and not FSCS-protected, “these important caveats were not given the same prominence as the statements about FCA authorisation.”

Collapsed mini-bond provider appoints adminstrators after FCA investigation

In the Dear Ceo letter Bailey says: “A firm should ensure that a financial promotion that quotes a yield figure gives a balanced impression of both the short and long term prospects for the investment.

“Given that a number of retail investments promise high returns and/or feature complex terms and structures, they present an inherent challenge to being promoted in a manner that is fair, clear and not misleading.”



FCA to be investigated over supervision of failed mini-bond firm

The FCA will commission an investigation in to its own supervision of collapsed mini-bond provider London Capital & Finance. As a result of the collapse 11,500 people lost £237m. The investigation will also cover, whether the existing regulation of mini-bonds protects retail investors adequately. The firm fell into default in January, a month after the […]

Spring Statement Pounds

Standard Life Aberdeen staff anger over ‘zero bonuses’

Standard Life Aberdeen staff are are up in arms after the group has cut bonuses to many staff and has handed others zero – a “doughnut” payout – according to The Telegraph. Bonuses across the company have dropped significantly after it saw more than £40bn outflows during 2018, the paper reports. One insider told The […]


How to become a financial adviser: diplomas, degrees and workplaces

Information on how to become a financial adviser is sparse. Money Marketing speaks to advisers about what the requirements really are and how best to meet them. Speaking to financial advisers and planners today, each will have a unique and varied story about how they entered the profession. There are more than a handful of pathways […]

Rayner Spencer Mills: Why we rate the Artemis Global Growth Fund

Ken Rayner and Graham O’Neill from RSM explain why they rate the fund, its investment process and how it can be used in a portfolio. The Artemis Global Growth Fund became a RSM ‘rated’ fund earlier this year. In this video, Ken Rayner and Graham O’Neill explain the fund’s investment approach, why they rate it, […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Any thoughts, Mr Bailey, about the FCA’s responsibility to ensure that any regulated firm selling retail investments produced by a provider that’s neither authorised or regulated by the FCA should have in place relevant PII?

    Surely that should take priority over ensuring that their adverts are properly worded (albeit that too is important)? A firm’s adverts may be absolutely perfect but, if the product they’re advertising and selling goes down the pan and the firm is held responsible but has no PII, what will happen to its liabilities? Or is this of no concern to you?

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm