Financial Promotions Guide
2.0 // What is a financial promotion?
Financial Promotions Guide
2.0 // What is a financial promotion?
While this is a broad definition, this guidance focusses on the advertising of consumer credit, and applies to all types of financial promotions that you may use.
This includes all ‘traditional’ promotions:
- Point of sale advertising
- Outdoor advertising
- Leaflets and brochures
- Pop up advertising
- Posters
- Radio/television
- Newspapers/magazines
The same guidance applies to all digital promotions, which includes the following:
- Website
- Pay-per-click advertising
- Banner advertising
- Social media marketing
- Email marketing
- SMS campaigns
This includes all ‘traditional’ promotions:
- Point of sale advertising
- Outdoor advertising
- Leaflets and brochures
- Pop up advertising
- Posters
- Radio/television
- Newspapers/magazines
The same guidance applies to all digital promotions, which includes the following:
- Website
- Pay-per-click advertising
- Banner advertising
- Social media marketing
- Email marketing
- SMS campaigns
This includes all ‘traditional’ promotions:
- Point of sale advertising
- Outdoor advertising
- Leaflets and brochures
- Pop up advertising
- Posters
- Radio/television
- Newspapers/magazines
The same guidance applies to all digital promotions, which includes the following:
- Website
- Pay-per-click advertising
- Banner advertising
- Social media marketing
- Email marketing
- SMS campaigns
Who are the regulators?
The following authorities are responsible for regulating advertising, communications with consumers and financial promotions.
FCA
The Financial Conduct Authority (FCA) is the conduct regulator for financial services firms. Their main aim is to improve how financial markets and firms work. The FCA are responsible for regulating consumer credit advertising.
Chapter 3 of the FCA Consumer Credit Sourcebook (CONC) sets out rules and guidance on financial promotions and communications with customers. You should also consider the requirements under chapter 2 (conduct of business standards) and chapter 4 (pre-contractual requirements).
In 2023, the FCA introduced a new principle for businesses – Principle 12 – a new Consumer Duty. You should, therefore, consider the requirements under the Principles of Business Sourcebook (PRIN), particularly under PRIN 2A.5 (Consumer Duty: retail customer outcome on consumer understanding) in relation to your financial promotions and other customer communications.
ASA
The Advertising Standards Authority (ASA) is the UK’s advertising regulator. The ASA is responsible for applying the Advertising Codes written by the Committee of Advertising Practice (CAP) and Broadcasting Committee of Advertising Practice (BCAP).
Advertising Standards Authority
CMA
The Competition and Markets Authority (CMA) work to promote competition for the benefit of consumers, both within and outside the UK. They aim to make markets work well for consumers, businesses, and the economy. The CMA are responsible for enforcing consumer protection legislation.
Competition and Markets Authority