Q&As

What constitutes a financial promotion under section 21 of the Financial Services and Markets Act 2000 and are there any exemptions?

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Published on LexisPSL on 06/10/2016

The following Financial Services Q&A provides comprehensive and up to date legal information covering:

  • What constitutes a financial promotion under section 21 of the Financial Services and Markets Act 2000 and are there any exemptions?
  • Financial promotions under section 21 of the Financial Services and Markets Act 2000
  • What is a controlled activity?
  • Exemptions from the section 21 restriction

What constitutes a financial promotion under section 21 of the Financial Services and Markets Act 2000 and are there any exemptions?

Financial promotions under section 21 of the Financial Services and Markets Act 2000

Under section 21 of the Financial Services and Markets Act 2000 (FSMA 2000), a person must not, in the course of business, communicate an invitation or inducement (communicate includes causing a communication to be made) to engage in investment activity, the entering or offering to enter into an agreement the making or performance of which by either party constitutes a controlled activity, or the exercising of any rights conferred by a controlled investment to acquire a controlled investment.

The ‘Financial promotion—flowchart’ is a useful starting point in deciding whether a financial promotion is captured by FSMA 2000, s 21.

What is a controlled activity?

A controlled activity is an activity

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