A Practical Guide for UK Finance CMOs
Purpose: Help marketing leaders design, approve, and distribute FCA-compliant financial promotions; without slowing growth.
Who this is for: CMOs, Heads of Marketing, Growth Leads, Product Marketers, and anyone signing off UK financial marketing.
1. What Is a “Financial Promotion”? (The FCA Definition, Simplified)
A financial promotion is any communication that:
- Invites or induces someone to engage in a regulated financial activity
- Is capable of influencing a consumer’s decision
This includes (but is not limited to):
- Website pages & landing pages
- Paid ads (Google, Meta, LinkedIn, TikTok)
- App store descriptions
- Email campaigns & push notifications
- Social media posts (organic & paid)
- Influencer content
- Pitch decks shared externally
- Comparison tables, calculators, FAQs
Key takeaway 🥡 for CMOs:
If it can influence a customer’s financial decision, assume it’s a financial promotion.
2. The Golden Rule: “Fair, Clear and Not Misleading” (FCNM)
Every FCA-regulated promotion must be:
Fair
- Does not exploit consumer vulnerabilities
- Balanced between benefits and risks
- Appropriate for the target audience
Clear
- Plain English (no legal or technical jargon)
- Important information is prominent
- No hidden notices in small print
Not Misleading
- Claims are accurate, substantiated, and current
- No exaggeration, cherry-picking, or selective statistics
- No misleading comparisons or implied guarantees
C-suite test:
“Would a reasonable customer fully understand what they’re signing up for?”
3. The New Normal: FCA’s Consumer Duty (Critical for CMOs)
Consumer Duty raises the bar beyond compliance.
CMOs must now ask:
- Does this promotion lead to good outcomes for customers?
- Could this messaging encourage poor financial decisions?
- Is the target audience appropriate for the product’s complexity and risk?
High-risk areas under Consumer Duty:
- “Quick wins” or “easy money” messaging
- Urgency tactics (“Act now”, “Last chance”)
- Promotions aimed at inexperienced or vulnerable consumers
- Over-simplifying complex or high-risk products
Marketing implication:
Growth tactics that were once “aggressive but legal” may now be unacceptable.
4. Who Can Approve Financial Promotions?
If you are FCA-authorised:
- Promotions must be approved by a competent, authorised person
- You must have a documented approval process
- Approvals must be recorded and auditable
If you are NOT FCA-authorised:
Promotions must be approved by an FCA-authorised firm
Since 2024, approvers must have explicit permission to approve promotions for unauthorised firms
CMO risk:
Using an unapproved approver = illegal promotion, even if the content is “accurate”.
5. Mandatory Risk Warnings
Risk warnings must be:
- Prominent (not buried or smaller font)
- Specific to the product
- Immediately visible (not behind clicks where required)
- Consistent across channels
Examples:
- Investments → “Your capital is at risk”, “Past performance is not a reliable indicator of future performance”
- Crypto → High-risk warning language as specified by FCA
- Lending → Representative APR, total cost clarity
- Buy Now Pay Later → Clear explanation of repayment consequences
Rule of thumb:
If the benefit is bold, the risk must be equally visible.
6. Claims, Comparisons & Performance Marketing
Claims must be:
- True
- Provable
- Up-to-date
High-risk claims:
- “Best”, “No.1”, “Guaranteed”, “Risk-free”
- “Cheapest”, “Highest returns” (without substantiation)
- Past performance implying future results
Comparisons:
- Must compare like-for-like
- Must cite sources
- Must not omit material differences
Performance marketing warning:
A/B testing does NOT override compliance.
7. Channel-Specific FCA Pitfalls
- Social Media
- Emojis ≠ compliance
- Influencers’ posts are YOUR responsibility
- Character limits do not remove risk disclosure obligations
- Paid Ads
- Headlines alone can be misleading
- Risk warnings must still be prominent
- “Click-through for risks” is often insufficient
- Websites & Apps
- Homepage copy is a financial promotion
- FAQs can be promotions
- UX dark patterns may breach Consumer Duty
- Email & Push
- Personalisation increases responsibility
- Trigger-based urgency is closely scrutinised
8. Red Flags That Attract FCA Attention
- Rapid customer growth driven by aggressive messaging
- High complaint volumes
- Discrepancies between ads and product reality
- Poor outcomes for vulnerable customers
- Influencer or affiliate misconduct
- Inconsistent risk warnings across channels
9. The CMO’s Pre-Launch Compliance Checklist
Before any campaign goes live, ask:
- Is this a financial promotion?
- Who approved it, and are they authorised?
- Is it fair, clear, and not misleading?
- Are risks as prominent as rewards?
- Is the target audience appropriate?
- Can we prove every claim?
- Would this stand up to an FCA review in 12 months?
10. What This Cheat Sheet Is (and isn’t)
✓ A practical marketing tool
✓ A risk-reduction framework
✓ A shared language for Marketing, Legal & Compliance
✕ Not legal advice
✕ Not a substitute for regulatory sign-off
