The FCA has increased regulation around misleading high-risk consumer investment adverts
IN BRIEF:
The regulation requires companies advertising to provide clearer language on the risk warnings of investments
It will also ban incentive schemes that can promote unwise financial decisions such as ‘refer a friend’
This regulation is the next step in the FCA’s Consumer Investments Strategy, following their implementation of a consumer duty last week
What does this mean?
Sarah Pritchard, executive director of markets at FCA: “Our new simplified risk warnings are designed to help consumers better understand the risks, albeit firms have a significant role to play too. Where we see products being marketed that don’t contain the right risk warnings or are unclear, unfair or misleading, we will act.”
