​

  • Claim

Name

The FCA Financial Promotions Regime mandates that UK crypto promotions must include risk warnings, ban incentives, enforce a 24-hour cooling-off period to prevent impulsive investments, and conduct appropriateness tests to assess investor understanding

Types

Claim

Quotes that support claims

In CP22/2 we proposed to classify cryptoassets as ‘Restricted Mass Market Investments’. This would allow them to be mass marketed to UK consumers subject to certain restrictions, in addition to the overarching requirement that financial promotions must be fair, clear and not misleading. The restrictions proposed included: clear risk warnings, banning incentives to invest, positive frictions, client categorisation requirements and appropriateness assessments.
In line with the regulatory design principle of “same risk, same regulatory outcome” we have taken a consistent approach to cryptoassets to that taken for other high-risk investments. This requires firms to use specific risk warnings and positive frictions (such as a 24-hour cooling off period for first time investors) in their consumer journeys, in addition to the overarching requirement that their promotions are fair, clear and not misleading.

Referenced by

Summary

Crypto news

Data block