FCA sets out tough new rules on marketing risky investments

The City regulator has set out tougher rules on the marketing of schemes such as crowdfunding, peer-to-peer lending and minibonds in an effort to prevent consumers from being lured into inappropriate high-risk investments.

Under the new rules announced by the Financial Conduct Authority yesterday, firms will need to provide more prominent, easy-to-read risk warnings for products and will be banned from offering some incentives, such as referral bonuses. They also will be required to carry out more rigorous assessments of potential customers to check the investments they are being offered are suitable.

The FCA is cracking down on misleading financial promotions in the wake of the £237 million London Capital & Finance investment scandal, which erupted in 2019 and hit about 14,000 small savers. The

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