The City regulator has set out tougher rules on the marketing of schemes such as crowdfunding, peer-to-peer lending and minibonds.
The new rules announced by the Financial Conduct Authority yesterday stated that firms will need to provide more prominent, easy-to-read risk warnings for products, will be banned from offering some incentives, such as referral bonuses, and will have to screen customers.
The FCA is cracking down on misleading financial promotions in the wake of the 2019 London Capital & Finance property investment scandal, which sank with £237m of investors’ money.
