HM Treasury has published the proposals with the aim of reducing misleading advertising or a lack of information which can expose potential customers to a level of risk they are not prepared for.
Currently, if an unauthorised firm wants to promote a particular financial product, they need to get that promotion approved by any authorised firm.
However, Treasury said with the variety and vast quantity of products being offered now, it no longer believes this provides a strong enough safeguard.
These proposals mean authorised firms will now have to obtain specific FCA consent to approve the financial promotions of unauthorised firms.
This would mean the FCA can have better oversight of those firms which would help ensure such promotions are clear, fair, and not misleading.
A consultation which would bring the promotion of certain cryptoassets under the FCA’s rulebook has also been published.
Economic secretary to the Treasury and city minister, John Glen said: “It’s important that people can understand the financial products they see promoted.
“If adverts by unauthorised firms are misleading, or don’t fully outline the risks, then people can end up losing money.
“That’s why we want to put more protections in place around such financial promotions, including the promotion of cryptoassets, while continuing to ensure people have access to a wide range of products on the market.”
