This overview is a guide to the Financial Services content within the financial promotion subtopic, with links to the appropriate materials. It also looks at some of the main issues affecting credit unions and credit ratings agencies. This section explains the restrictions on financial promotions and will be useful for those who need to know whether their communications are subject to the financial promotion regime.
The financial promotion regime is rooted in section 21 of the Financial Services and Markets Act 2000 (FSMA 2000) and is made up of the following key elements:
requirements under the FCA’s Conduct of Business sourcebook (COBS 4 rules)
exemptions under the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, SI 2005/1529 (Financial Promotion Order or FPO)
promotion of unregulated collective investment schemes (UCIS) (FSMA 2000, s 238), and
the FCA's Perimeter Guidance Manual (PERG 8 guidance)
It is helpful to consider the following questions when determining whether the financial promotion restriction will apply:
has a communication been made?
is
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The International Organization of Securities Commissions (IOSCO) has published the final report on pre-hedging, final report on ESG indices as benchmarks, consultation report on recommendations for secondary market disclosure and a statement on the Importance of high-quality valuation information in financial reporting as part of its 2025 workplan. The reports address key regulatory challenges in financial markets and aim to promote consistent standards, investor protection and market integrity across jurisdictions.
The Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) have jointly published guidelines to assist firms considering providing services under the Berne Financial Services Agreement (BFSA). The guidelines aim to clarify expectations, outline operational considerations and help ensure compliance with applicable regulatory standards. The BFSA is an outcomes-based mutual recognition agreement between the UK and Switzerland, designed to facilitate cross-border financial services trade by providing new market access in selected areas and securing existing levels of access. Under the BFSA, UK insurance companies can offer certain wholesale insurance services in Switzerland without obtaining Swiss authorisation, while Swiss firms can offer certain investment services to sophisticated clients in the UK without requiring UK authorisation. The BFSA is set to take effect on 1 January 2026.
A round-up of other developments, which have not been covered in full by the LexisNexis Financial Services practical guidance team but may nevertheless be of interest.
The House of Lords Financial Services Regulation Committee has issued a letter to the Chancellor of the Exchequer, the Rt Hon. Rachel Reeves MP, responding to the government’s reply to its report Growing Pains: Clarity and Culture Change Required. The Committee welcomed the government’s recognition of the financial services sector’s role in promoting economic growth but expressed concern that key findings necessary for achieving the Financial Conduct Authority (FCA) and Prudential Regulation Authority’s (PRA's) secondary international competitiveness and growth objective had not been adequately addressed. It criticised the lack of a clear, evidence-based policy showing how sectoral growth would stimulate the wider economy, the limited assessment of regulatory impacts on investment and SME lending, and the regulators’ risk aversion. The Committee called for clearer government direction, stronger alignment between regulators and economic policy, and the inclusion of robust, outcomes-based metrics to measure the regulators’ contribution to real economic growth. It questioned whether current performance targets were sufficiently ambitious and urged the Treasury to commission international benchmarking of regulatory performance. The Committee requested detailed answers to eleven specific questions on growth policy, regulatory alignment, metrics, and comparative analysis, reaffirming the need for greater clarity and cultural change to ensure financial regulation effectively supports the UK’s economic strategy.
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