Financial promotions
The FCA defines a financial promotion as: An invitation or inducement to engage in investment activity or to engage in claims management activity that is communicated in the course of business.
Financial promotion to consumers
Financial promotion, put in simple English, is any form of advertising that encourages a customer to purchase goods from your business using retail finance as a payment method.
Financial promotion example from V12:
This could be:
- In-store promotions
- Websites
- TV, radio, or print e.g. magazines
- Flyers and posters
- Social media
- Emails
This also includes communications that you might not consider advertising. For example, if you email customers to inform them that a product can be purchased using retail finance, or that your business now offers retail finance, then you still must follow the rules as this is classed as an ‘encouragement to purchase’.
It is important to remember all promotions must comply with both the Financial Conduct Authority (FCA) and Advertising Standards Authority (ASA) rules.
From 7th February 2024: Businesses that don't have FCA authorisation are no longer able to create and promote their own financial promotions without approval from a ‘Gateway Firm’.
Gateway firms are FCA authorised businesses that have additional permissions to authorise financial promotions on behalf of others.
The good news for V12 account holders is that there is a downloadable suite of compliant financial promotions available through the V12 portal. The promotions will be V12 branded and must not be edited in any way.
If you have an account with V12 you can log in here to access the suite of financial promotions.
If you need any further advice, please get in touch!