Consultation on the section 21 gateway
What has happened?
In January 2023, the FCA reminded the industry that, subject to legislation, a new authorisations gateway is being introduced, which will mean that firms need to apply to the FCA if they wish to continue or start approving financial promotions for unauthorised persons.
What are the key points?
Currently, any authorised person can generally approve financial promotions for unauthorised persons.
The FCA published its consultation paper CP22/27 in December, which included proposals on how it intends to introduce the gateway. This includes proposals on how it plans to assess applications, and the regulatory reporting it intends to require from firms that apply. The consultation ends on 7 February 2023.
The proposed gateway will not apply to principal firms approving their Appointed Representatives’ financial promotion or to unauthorised firms in the same corporate group as the approving firm.
The FCA expects to publish a Policy Statement and final rules in the first half of 2023.
How can we help you?
Thistle Initiatives has supported brokers for over 10 years as a trusted compliance and regulatory advisor. In addition to assisting you as and when our team of specialists can serve as your right hand in a meeting and complying with regulations. We understand the importance of staying up-to-date and compliant and are dedicated to providing the guidance and support needed to do so.
In addition to helping you understand and navigate current financial promotion rules but also assist you in keeping up to date with new and changing regulations that are coming over the horizon.
Has anything discussed in the article raised questions you want answered? Contact our specialist team now to schedule a free consultation. Get in touch with us by calling 020 7436 0630 or sending an email to info@thistleinitiatives.co.uk.