The regulation of consumer credit advertisements


Published by a ½Û×ÓÊÓƵ Financial Services expert
Practice notes

The regulation of consumer credit advertisements


Published by a ½Û×ÓÊÓƵ Financial Services expert

Practice notes
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This Practice Note looks at the regulation of Consumer credit advertisements under the Financial Services and Markets Act 2000 (FSMA 2000) and Chapter 3 of the Financial Conduct Authority’s (FCA) Consumer Credit Sourcebook (CONC 3) including what constitutes a financial promotion, the general requirements of financial promotions in CONC 3 and the enforcement powers of the FCA in the event of a breach of the rules.

Financial promotion regime—the general restriction

Section 21 of the Financial Services and Markets Act 2000 (FSMA 2000) applies to all firms that advertise (ie promote) consumer credit products, including consumer hire products. Section 21 states that a person must not, in the course of business, communicate an invitation or inducement to engage in investment activity (that is, to make a financial promotion) unless:

  1. •

    the person is authorised by the FCA or the Prudential Regulation Authority (PRA)

  2. •

    the content of the communication is approved by a person who is authorised by the FCA or the PRA, or

  3. •

    the financial promotion falls within an exemption set out in the Financial Services and

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Consumer definition
What does Consumer mean?

A consumer is a person acting outside the context of a trade, business or profession, but the definition takes different meanings depending on the context in which it is used. Therefore it is important to check the relevant law or regulation such as the Consumer Rights Act 2015 (CRA 2015), the Unfair Contract Terms Act 1977, the Sale of Goods Act 1979.

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