What constitutes a financial promotion under FCA rules?

A financial promotion under FCA rules is specifically defined as a communication that invites or induces someone to engage in investment activities. This definition encompasses a wide range of promotional communications that aim to persuade individuals to take action regarding investments, whether that involves buying, selling, or otherwise participating in financial markets.

This is particularly important because it ensures that all promotional materials are held to certain standards of clarity and fairness, protecting consumers from misleading or aggressive marketing tactics. By focusing on the invitation or inducement aspect, the FCA seeks to regulate communications that can influence people's financial decisions, thereby maintaining market integrity and promoting informed decision-making among investors.

Other possible considerations, such as general market reviews or advertisements, do not automatically qualify as financial promotions unless they actively invite or encourage investment activity. Similarly, recommendations by financial advisors, while important, are typically more personalized interactions rather than general financial promotions. Thus, to be classified as a financial promotion under FCA guidelines, the communication must explicitly aim to induce action in relation to specific investment products or services.