Strengthening Regulation! UK FCA: New review requirements for financial advertising, companies must apply within the deadline

The UK Financial Conduct Authority (FCA) announced on the 13th that it will introduce new screening standards for companies approving financial advertisements, aiming to ensure content accuracy and fair presentation of risks and rewards.

FCA: Combating Bad Actors from an Advertising Perspective to Protect Investors

The FCA announced through a press release that registered crypto companies will now need to apply to demonstrate their ability to ensure the neutrality and accuracy of their advertising and marketing activities.

The FCA stated that this move is intended to help people make informed decisions about savings, investments, and borrowing wisely; and pointed out that the previous practice of approved advertising by registered companies had clearly misled investors and harmed the financial markets.

It is reported that all companies must apply to the FCA between November 6 of this year and February 6 of next year. Applicants who have submitted applications will be able to continue publishing advertisements until they receive the review results.

Furthermore, approved crypto companies will also be required to regularly report their marketing and advertising content to the FCA, allowing them to track and combat misleading advertisements at any time.

FCA Market Executive Director Sarah Pritchard stated:

By introducing these new checks, we will ensure that those reviewing ads have the necessary skills and expertise. Companies need to ensure that people receive the right information at the right time so that they can make informed and reasonable decisions.

She added, "As the cost of living continues to rise, consumers must make difficult financial allocation decisions in spending and investing, making these adjustments more important than ever before."

The FCA also explained that this policy will raise the standards and quality of financial services to align with their three-year reform strategy as part of the three-year reform strategy.

UK Committed to Comprehensive Regulation

As the regulatory authority for the crypto market in the UK, the FCA, after approving the Financial Services and Markets Act FSMB 2023 in June of this year, expanding its regulatory authority over the crypto market, is now also taking action against financial-related advertisements, aiming to curb cryptocurrency scams, asset theft, and illicit money laundering incidents.

According to the information gathered, the rules proposed by the FCA and enforcement actions taken are as follows:

1. Designating all Bitcoin ATMs in the UK as unregistered and ordering their closure
2. Rejecting the registration application submitted by the exchange Binance to the FCA, prohibiting them from providing any regulated services and products
3. The Financial Services and Markets Act FSMB coming into effect in the UK, strengthening supervision and transparent investment, protecting investors, and ensuring secure adoption
4. Releasing the "Social Media Guidelines," publishing memes or investment profit graphics may also be considered investment marketing and subject to prosecution
5. Introducing a 24-hour cooling-off period for first-time investors, prohibiting referral code rebates
6. Restricting the promotion of crypto companies, only allowing registered or authorized personnel to conduct promotional activities for them

Previously, PayPal, which introduced PYUSD, recently announced the suspension of cryptocurrency purchasing services for UK residents starting from October 1, seen as a move by FCA to introduce new regulations to the crypto market and a move by the payment giant seeking compliance.