High Risk Investments Can Only Be Promoted by Experts

Published / Last Updated on 01/08/2022

The Financial Conduct Authority (FCA) has today published new rules to tackle the advertising and promotion of high-risk investments.

It is normal for mainstream advisers and investment companies to have compliance procedures for marketing regulated investments with relevant risk warnings.

It is also normal for mainstream advisers and investment companies to be required to ensure that any product or service is both suitable, affordable and in line with a client’s experience, knowledge and understanding.

More recently, investors have been looking for alternative investment opportunities by that wine, whisky, forestry, film schemes and of course more recently crypto assets.

We have a saying at financialadvice.net and that is “you can only con a greedy person”.  Whilst we would never dream of such a thing as a professional and regulated adviser, we see it all too often that client approach us after the event having invested in ‘wacky’ offshore property developments, tax avoidance schemes and more.  Greed blurs the mind.

The FCA will require promoters of high-risk investments to:

  • Ensure their product matches the client’s risk profile, tolerance to losses and experience, in short to ensure suitability and affordability.
  • Marketing a promotions of higher risk investments must carry clear and understandable risk warnings.
  • Banning ‘refer a friend’ promotions.
  • Must ensure the people promoting the high-risk investments have the necessary expertise.

What of Crypto Currency?

The promotion of crypto currencies is not included in this latest set of rules as the FCA suggests that crypto in the UK is currently passing through new laws to regulate it and at the point, marketing and promotion including required expertise will also be introduced.


We are staggered that it has taken the UK regulator, in it various forms, since 1989 has not had a set of marketing rules and regulations to protect and increase awareness for consumers when dealing with high-risk investments.

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