Introduction
Marketing high-risk investments in the UK has become more tightly regulated in recent years. The Financial Conduct Authority (FCA) introduced sweeping changes through Policy Statement PS22/10 "Strengthening our financial promotion rules for high-risk investments and firms approving financial promotions" (August 2022). By 2026, these rules are fully in force, meaning fintech firms offering high-risk investments (like peer-to-peer lending, crowdfunding, mini-bonds, etc.) must navigate a stringent compliance landscape. The goal of the rules is to ensure consumers receive clear warnings and are protected from misleading or aggressive promotions.
This article provides an overview of the FCA's high-risk investment promotion rules as they stand in 2026 and offers insights on how firms can build compliance into their marketing workflows. Many of these requirements also apply to cryptoasset promotions, which share the same foundational framework. It's important to approach these requirements with neutral, factual messaging – both to meet regulatory standards and to maintain your firm's reputation.
High-Risk Investment Promotions: What Changed?
Under the new regime, the FCA overhauled its financial promotion rules for high-risk investments via PS22/10. Key changes include:
Reclassification of Investment Types
The FCA rationalized various high-risk products into two categories: "Restricted Mass Market Investments" (RMMIs) and "Non-Mass Market Investments" (NMMIs). Generally, RMMIs (e.g. crowd-funding investments, peer-to-peer loans) can be marketed to retail investors with added safeguards, whereas NMMIs (higher-risk or illiquid securities not suitable for mass marketing) cannot be promoted to ordinary retail investors at all.
Stronger Risk Warnings
All promotions for RMMIs must include prominent, standardized risk warnings mandated by the FCA. For example, firms must plainly state that the investment is high risk and investors could lose all their money. The FCA introduced specific wording and formatting requirements for these warnings to ensure they are clear and cannot be missed. (These risk warnings rules took effect from 1 December 2022.)
"Positive Friction" (Cooling-Off Period)
The FCA now requires a 24-hour cooling-off period for first-time investors in RMMIs. In practice, this means when a new retail customer expresses interest in a high-risk investment, they must wait at least a day and reconfirm their intention to proceed. This built-in pause is designed to prevent impulsive investments by giving consumers time to reconsider the risks.
Ban on Incentives
Firms can no longer use monetary or non-monetary inducements to lure retail investors into high-risk investments. Promotions like refer-a-friend bonuses, sign-up rewards, or time-limited offers are banned for RMMIs. The FCA determined that such incentives can unduly influence consumers to take on inappropriate risks.
Enhanced Investor Categorisation
Client categorisation rules have been tightened. Firms must ensure that anyone investing in a high-risk product is appropriately classified (for instance, as a high-net-worth or sophisticated investor, or as a "restricted" investor who agrees not to invest above certain limits). Marketing materials should be targeted only at investors who fall into the correct category.
Stronger Appropriateness Tests
When selling RMMIs to a new retail client, firms are required to conduct an appropriateness assessment – essentially a knowledge check or questionnaire – unless that client is advised or otherwise exempt. The FCA's rules mandate "stronger appropriateness tests" to confirm the investor understands the risks involved. If a customer fails to demonstrate basic understanding, the firm must warn them or even restrict them from investing. For a detailed comparison of how these tests differ from suitability assessments, see our guide on appropriateness vs suitability.
Tightened Approval Process (Section 21 Approvals)
The FCA has also elevated the standards for firms that approve financial promotions for others (so-called "s21 approvers" under the Financial Services and Markets Act 2000). Under the new rules, any firm approving an advertisement on behalf of an unauthorised issuer must have relevant expertise in the investment product and adhere to robust due diligence standards. A new "Financial Promotions Gateway" has been introduced, meaning firms need specific FCA permission to act as s21 approvers.
Building Compliance into Your Promotion Workflow
Compliance with high-risk promotion rules in 2026 isn't just a one-off project – it needs to be an ongoing part of your marketing and product governance processes. Here are steps firms can take to embed these requirements into the promotion workflow:
Update and Audit All Marketing Materials
Inventory all your financial promotions (webpages, ads, pitch decks, emails) related to high-risk investments. Ensure each promotion includes the correct risk warning in the prescribed format. Remove any prohibited phrases (e.g., "safe investment", "guaranteed returns") and eliminate any incentive offers. It's wise to use a standardized compliance checklist for every piece of content.
Implement Approval Checkpoints
Introduce an internal approval process where compliance officers (or other competent staff) review and sign off on every high-risk investment promotion before it goes live. This review should verify that the target audience is appropriate, the risk disclosures are prominent, and the content is fair, clear and not misleading.
Investor Onboarding Controls
Integrate the required investor categorisation and appropriateness checks into your customer onboarding or investment journey. Your platform might require new users to select their investor category and complete a short quiz on investment risks. Also, incorporate the 24-hour cooling-off logic into your system.
Training and Awareness
Train your marketing, product, and sales teams on the dos and don'ts of high-risk investment promotions. Everyone involved in creating or approving content should be familiar with the FCA's rules. Cultivating a culture of compliance will make it easier to catch issues before the regulator does.
Monitor and Review
Even after promotions are published, maintain oversight. Track key metrics such as customer complaints or dropout rates during the onboarding risk warnings. Periodic compliance audits of live promotions (perhaps quarterly) can ensure ongoing adherence. Remember, the FCA is "closely monitoring implementation" of these rules and will act on breaches.
Stay Current with FCA Guidance
The regulatory landscape can evolve. The FCA occasionally publishes guidance or updates – for example, it issued good and poor practice examples for high-risk investment promotions in 2023. Make sure to follow any new FCA publications or communications on this topic. Your compliance framework should adapt accordingly.
How RegTech Tools Can Help
While responsibility for compliance always rests with the firm, technology can substantially ease the burden of managing these requirements. RegTech software solutions are designed to help firms manage compliance workflows efficiently. For high-risk investment promotions, such tools can:
Workflow Automation
Route promotional content through a pre-defined approval pipeline, ensuring that every draft automatically goes to the right compliance reviewer. This creates an auditable trail of who approved what and when.
Approved Disclosures & Templates
Maintain a library of the latest FCA-prescribed risk warnings and disclosure templates. This allows marketing teams to easily insert the correct wording and formatting into materials.
Audience Restrictions
Tag or segregate content based on investor category. Ensure that communications about high-risk investment products only reach customers who have been categorised as eligible.
Monitoring & Flagging
Scan text for high-risk phrases or claims and flag content that needs extra review (e.g., any use of words like "secure", "guaranteed", or returns above a certain threshold).
By leveraging such technology, compliance teams can reduce manual workload and focus on higher-level oversight. However, no software can guarantee compliance – human judgment is still critical. Tools should support, not replace, the firm's compliance expertise.
Conclusion
The FCA's high-risk investment promotion rules are a cornerstone of the regulator's strategy to protect retail investors from harm. By 2026, these rules have been in effect for a few years, and the FCA expects full compliance from all firms under its scope. Non-compliance can lead to regulatory enforcement and significant reputational damage. On the flip side, firms that embrace these rules and bake them into their customer journey can foster greater trust with their users.
For heads of Compliance, product leaders, and founders, the key is to integrate compliance into every step of creating and distributing promotions. From initial concept to final communication, consider how each message aligns with the rules and the spirit behind them. Use the FCA's official publications (like PS22/10) as your north star, and don't hesitate to seek professional advice when in doubt. With robust processes and the right tools in place, navigating the high-risk investment promotion rules in 2026 becomes a manageable (even routine) part of doing business in the UK's fintech sector.
References
- FCA Policy Statement PS22/10 – "Strengthening our financial promotion rules for high‑risk investments and firms approving financial promotions" (Aug 2022)
- FCA, "Assessing firms' compliance with high-risk investment promotion rules – Good & Poor Practice", Sept 2023
- FCA Handbook, COBS 4 – Rules on financial promotions and communications with clients
Managing high-risk promotion compliance across multiple channels and investor types requires structured approval workflows, automated risk warning insertion, and audit-grade evidence collection. Technology can significantly reduce the manual burden while ensuring consistent regulatory adherence.