15 Sep FCA News PS23/13 – Introducing a gateway for firms who approve financial promotion

Received from the FCA 12.9.23

FCA have published our policy statement on introducing a gateway for firms who approve financial promotions.

This policy statement follows the amendments made to s21 of FSMA within the Financial Services and Markets Act 2023, which were finalised in June. These amendments create a regulatory gateway (the s21 gateway) for all authorised persons that want to approve financial promotions for unauthorised persons (s21 approvers). Currently, any authorised person can generally approve a financial promotion for an unauthorised person. Once the gateway comes into effect, all firms that want to continue to be able to approve promotions will need to apply to the FCA for permission to do so (subject to certain exemptions).

The initial application window for firms that want to apply at the gateway will open on 6 November 2023, and will close on 6 February 2024. From 7 February 2024, the new legislation will come into force and any firm that has not applied during the initial application period will have to cease approving financial promotions. Firms will be able to apply for permission from 7 February onwards, by submitting a variation of permission (VOP) in the normal way. Authorised persons that apply during the initial application period will be able to continue approving promotions until their application has been determined.

Our policy statement outlines our final approach on:

• how we will assess applicants at the gateway and the basis for our granting or refusing applications
• reporting requirements for firms that are granted permission to approve financial promotions
• not extending the compulsory jurisdiction of the Financial Ombudsman Service to the approval of financial promotions
• updates to our non-Handbook guidance for firms that approve financial promotions for investments
• a review of our approach within 24 months of the rules coming into force

We have also published a webpage, Applying to approve financial promotions for unauthorised persons, for the benefit of members who require further information to assist with preparing their application.