Financial Promotions Order: Exemptions for financial services practice
Produced in partnership with 4-5 Gray's Inn Square
Financial Promotions Order: Exemptions for financial services practice

The following Financial Services guidance note Produced in partnership with 4-5 Gray's Inn Square provides comprehensive and up to date legal information covering:

  • Financial Promotions Order: Exemptions for financial services practice
  • Financial Promotions Order : Recipient-based exemptions
  • Financial Promotions Order: Arrangement-based exemptions
  • Financial Promotions Order: Source-based exemptions

This Practice Note looks at exemptions from the financial promotion restriction which may be most relevant to financial services practice. These exemptions are not available to MiFID business carried on by investment firms. There are three groups of exemptions to the financial promotion restriction which are set out in the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005, SI 2005/1529 (FPO). The exemptions are grouped according to activity type:

  1. those applicable to all controlled activities (FPO SI 2005/1529, Pt IV)

  2. those applicable to deposits and insurance (FPO SI 2005/1529, Pt V) and

  3. those applicable to certain controlled activities (these exclude deposit taking) (FPO SI 2005/1529, Pt VI)

For guidance on the exemptions that apply to all controlled activities, see Practice Note: Exemptions for all controlled activities and for guidance on the exemptions for deposits and insurance see Practice Note: Exemptions for deposits and insurance.

The application of the exemptions also depends on the type of communication being made eg real time versus non-real time, or solicited versus unsolicited.

The exemptions which might be most useful for financial services practice include those for communications aimed at investment professionals (FPO SI 2005/1529, art 19); certified high net worth individuals (FPO SI 2005/1529, art 48); high net worth companies (FPO SI 2005/1529, art 49) and sophisticated investors (FPO SI