British Financial Conduct Authority (FCA) demands clearer and more prominent risk warnings from the companies marketing high-risk investments. Certain investment incentives, such as refer a friend bonus, will be banned altogether.
In a note published on Aug. 1, the FCA has finalized stronger rules to “help tackle misleading adverts that encourage investing in high-risk products.” The regulator’s attempt to reduce the number of people investing in high-risk products follows a concern that “a significant number of people” don’t understand the risks engraved into some kind of investment.
Cryptoasset promotions, however, are exempted from the new guidelines. The FCA intends to come up with final rules on crypto promotion only after the government confirms that such assets are in the regulator’s remit.
Nevertheless, as the release qualifies crypto as