On June 8, the UK Financial Conduct Authority issued its Policy Statement (PS23/6) setting out its rules for financial promotions involving cryptoassets. As outlined in PS23/6, financial promotions of qualifying cryptoassets are now within the scope of the UK financial promotion regime (read our previous update here).
Qualifying cryptoassets will be treated as “restricted mass market investments” for the purposes of the FCA’s financial promotion rules.
PS23/6 includes FCA expectations regarding the following:
Categorisation of cryptoassets: Readily Realisable Securities (RRS), Restricted Mass Market Investments (RMMI) and Non-Mass Market Investments (NMMI). Qualifying cryptoassets fall under the category of RMMI.
Risk warnings and risk summaries
Banning incentivises investment activity
Cooling-off period of 24-hour minimum for first-time investors with a firm
Client categorisation requirements and appropriateness assessments
Personalised risk warning pop-ups
Record keeping requirements
Requirements for authorised firms communicating and approving financial promotions
PS23/6 will be of interest to, amongst others, cryptoasset businesses registered with the FCA, cryptoasset business considering, or in the process of, registering with the FCA, overseas cryptoasset firms marketing, or considering marketing, to UK consumers, and authorised firms considering communicating or approving cryptoasset financial promotions.
The rules in PS 23/6 will come into force on 8 October 2023.
Simultaneously, the FCA published a Guidance Consultation outlining its expectations on how firms should comply with the requirement that cryptoasset financial promotions must be fair, clear and not misleading.
Responses to the Guidance Consultation must be provided by 10 August 2023. The FCA plans to release a Final Guidance in Autumn 2023.