Financial promotion

financial promotion: in the context of the Financial Services and Markets Act 2000 (FSMA), “an invitation or inducement to engage in investment activity, communicated by a person in the course of business”; section 21 of FSMA prohibits any financial promotion unless the communication is from an authorised person or is approved by an authorised person – this is known as the ‘general prohibition’; statutory exceptions to the general prohibition are set out in the FSMA 2000 (financial promotion) Order 2005 (FPO), for example, article 48 FPO creates an exception where the communication is to a certified high net worth individual and article 49 FPO creates an exception where the communication is made to a high net worth company.