Financial Planners have told Financial Planning Today that they welcome the Financial Conduct Authority (FCA) proposals to strengthen financial promotion rules for high-risk investments, but also suggested more work should be directed at banning other unregulated speculative investments.
A discussion paper published today by the FCA is seeking views on whether more types of investments such as equity shares should be classified as high-risk investments, how it can further segment the high-risk investment market and what risk warnings they should have attached, and whether there should be more requirements to monitor financial promotions on an ongoing basis.
Keith Churchouse, director and Certified Financial Planner at Chapters Financial, said issues surround financial promotions have been a problem for a while but have been exacerbated by the Coronavirus pandemic.
He welcomed the proposal from the FCA to extend the classification of high-risk investments.
He said: “The issues surrounding financial promotions have been