Voxly Vision
Does this apply to me?
It matters to anyone who communicates an invitation or inducement to engage in investment activity in the UK, in the course of business, without being FCA authorised. That includes fintechs, crypto firms, startups raising money, property and investment schemes, and finfluencers paid to promote financial products.
The basic rule is in section 21 of FSMA 2000: an unauthorised business can't communicate a financial promotion unless an authorised firm approves it or an exemption in the Financial Promotion Order applies. Breaking the restriction is a criminal offence, and any resulting agreement may be unenforceable.
Key exemptions
The Order lists dozens of exemptions. The ones marketers meet most often:
- Investment professionals (article 19): promotions aimed only at authorised firms and professional investors.
- Certified high net worth individuals (article 48): people with income of at least £100,000 or net assets of at least £250,000, who have signed a statement.
- Certified and self-certified sophisticated investors (articles 50 and 50A).
- High net worth companies and associations (article 49).
- One-off communications (article 28) tailored to a single recipient.
- Communications from overseas (article 12) that aren't directed at UK recipients.
Exemptions are read narrowly. If the promotion can reach the general public, as social media posts usually do, investor-only exemptions won't apply.
Recent changes
- Cryptoassets were brought within the financial promotion regime from 8 October 2023. See crypto promotion rules.
- High net worth and sophisticated investor thresholds were raised in January 2024, then returned to £100,000 income or £250,000 net assets from 27 March 2024, with the sophisticated investor criteria partly restored.
- The FCA approver gateway has applied since February 2024, so firms must have FCA permission to approve other businesses' promotions.
How Voxly Vision checks a financial promotion
Voxly Vision flags content that looks like a financial promotion, checks for approval details, risk warnings and balance, and shows which FCA rule is at stake.
Frequently asked questions
What is the Financial Promotion Order?
A statutory instrument made under FSMA 2000. It defines which communications count as financial promotions and sets out the exemptions from the section 21 restriction.
What does the FCA define as a financial promotion?
An invitation or inducement to engage in investment activity, communicated in the course of business. Social media posts, ads, emails, webinars and influencer content can all be financial promotions.
What is the high net worth exemption?
It allows certain promotions to be sent to individuals who certify that they had an income of at least £100,000 in the last financial year, or net assets of at least £250,000, excluding their main home and pensions.
Can finfluencers promote investments?
Only if the promotion is approved by an FCA-authorised firm with the right permission, or an exemption genuinely applies. Unapproved finfluencer posts can be a criminal offence.
What happens if I break section 21?
It is a criminal offence, punishable by up to two years in prison and a fine. Agreements made as a result may be unenforceable against the customer.