How to Promote Finance Options Without Breaking FCA Rules

Navigating Financial Promotion in the UK: Stay Compliant and Build Trust

Presenting finance options to consumers can drive sales and increase satisfaction. However, in the UK, all promotions for financial products – including credit agreements and loans – must meet strict FCA standards. Failure to comply can result in fines, reputational damage, and even criminal prosecution.

Clarity and Accuracy: The Foundation of FCA Compliance

Financial promotions must be clear, fair, and not misleading. To ensure your advertising stands up to scrutiny:

• Be transparent: Disclose all key features, costs, and risks related to the finance product.
• Use plain language: Avoid jargon or small print that could obscure important information.
• Balance the message: If an advert highlights benefits, it must also mention relevant risks or limitations.
• Prominent disclosure: Representative APR, terms, and conditions cannot be hidden or downplayed.

Checklist for Compliant Promotion

1. Check authorisation: Only FCA-authorised firms or their appointed representatives can communicate financial promotions or have them approved.
2. Pre-approve content: All promotions must be approved by an FCA-authorised person before being published.
3. Review regularly: Financial products evolve, so ensure your promotions remain accurate and up-to-date.
4. Digital diligence: Online adverts and social media posts fall under the same FCA standards as traditional ads.

FCA Do’sFCA Don’tsState clear APRUse misleading claimsShow total costsOmit key fees or risksIdentify lenderHide conditions

Industry Views and Official Guidance

"It is vital that firms understand the high standards expected by the FCA when promoting finance to consumers... Clarity and fairness are non-negotiable."

— Financial Conduct Authority (FCA)

Key regulatory sources include:

• The FCA Handbook (especially CONC and COBS)
• FCA's official page on financial promotions
• Advertising Standards Authority (ASA) guidance

Safeguard Your Business and Your Customers

Adhering to FCA rules not only shields your business from regulatory risk but also builds valuable consumer trust. Transparent promotions foster confidence, which is essential for long-term growth.

To recap:

• Always pre-approve content
• Review promotions regularly
• Prioritise clear, balanced communication

Next steps:

• Train your staff on compliance essentials
• Audit your current financial promotion materials
• Consult the latest FCA guidance before launching new campaigns

Your commitment to transparency and compliance will set you apart in a competitive market—delivering value to both customers and your business.