FCA approach on the supervision of financial promotion

This Practice Note provides information on how the Financial Conduct Authority (FCA) ensures that financial promotions issued by firms are compliant with its rules, and includes examples of enforcement action when non-compliant promotions have been identified. For more information about the financial promotion regime more generally, see Practice Note The financial promotion regime—essentials.

Over recent years, the FCA has sought to embed an outcomes-focused approach to supervision whilst retaining aspects of a conduct-focused approach. Following a March 2018 consultation, the FCA set out its approach to supervision in March 2019. In the document, the FCA noted that it supervises most firms as members of a portfolio of firms that share a common business model. The FCA analyses each portfolio and agrees a strategy to take action on firms posing the greatest harm. The regulator communicates its expectations, priorities and examples of good or poor practice. For example,

Day-to-day supervision is therefore done by sector-dedicated supervisors. The FCA supports their work with specialist supervision departments where needed. The specialist