FCA Financial Promotions: Common Scenarios
Scenarios
Can I post about investments on social media?
Answer: Conditional
Conditions:
- Must be authorised or approved by authorised firm
- Must include risk warnings in the post itself
- Must be fair, clear, not misleading
- Cannot use character limits as excuse to omit required info
- If you can’t fit the warnings, you can’t make the post
Confidence: High
Citation: COBS 4.10
Can my startup promote its investment round?
Answer: Conditional
Conditions:
- Need approval from an FCA-authorised firm
- Or use an exemption (e.g., high net worth, sophisticated investor exemptions)
- Cannot promote to general public without approval
- Must include all required warnings
Confidence: High
Citation: FPO Articles 48-50A
Can I use customer testimonials?
Answer: Conditional
Conditions:
- Testimonial must be genuine
- Cannot be misleading about typical experience
- Must include balancing risk information
- Cannot cherry-pick only positive reviews
- Past performance warnings apply if relevant
Confidence: High
Citation: COBS 4.2
Do I need approval for crypto promotions?
Answer: Yes
Conditions:
- Since October 2023, crypto is a controlled investment
- Must be approved by FCA-authorised firm
- Enhanced risk warnings required
- Cooling-off period for first-time investors
- “Don’t invest unless prepared to lose all your money”
Confidence: High
Can I show past performance?
Answer: Conditional
Conditions:
- Must include “past performance is not a guide to future performance”
- Must show a minimum 5-year period (or since inception)
- Cannot cherry-pick good periods
- Must be based on actual, gross returns
- Must show fees impact if applicable
Confidence: High
Citation: COBS 4.6