FCA to tighten rules to prevent investors 'sleepwalking into high-risk investments'

Responses due 23 March

The Financial Conduct Authority has launched a consultation into its new rules intended to reduce the ease and speed with which investors can make high risk investments.

Under the proposed rules, the regulator would improve risk warnings on adverts, ban incentives such as new joiner or refer-a-friend bonuses and ensure the expertise and understanding of firms approving financial marketing. Advertising Standards Authority rules crypto ads 'misleading' Head of personal finance at AJ Bell Laura Suter described the move as a push to "make it harder for novice investors to sleepwalk into buying high-risk investments". "There has been a boom in people investing during the pandemic, and in turn there has also been a steep rise in the number of newcomer in...