New Marketing Rules for Crypto Firms

Catherine Alexander
Partner

This month the Financial Conduct Authority (FCA) published a review of how different crypto firms are complying with certain financial promotion rules. The review found multiple instances where firms were not meeting the required standards and poor practice across many firms. Poor practice included firms relying on industry comparisons to decide what is acceptable.

The Government has legislated to bring cryptoassets within scope of the financial promotion regime. This is an important move to ensure that consumers understand the risks of investing in cryptoassets. They want cryptoassets to only be promoted within a robust framework which remains fit for purpose in a changing investment environment.

This will help to protect those who are looking to invest in cryptoassets. Consumers should receive timely, accurate information that allows them to make effective investment decisions without being pressured, misled or inappropriately incentivised to invest in products that do not meet their needs.

This article isn’t personal advice. If you’re not sure whether a course of action is right for you, ask for financial advice.

Past performance is not a guide to future performance, nor a reliable indicator of future results or performance. The value of investments, and the income or capital entitlement which may derive from them, if any, may go down as well as up and is not guaranteed; therefore investors may not get back the amount originally invested.