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FCA consultation on Section 21 Gateway ends 7th February 2023.

On 6th December 2022 the FCA published consultation (CP22/27) in which it set out its proposal to operate a new gateway for firms who approve financial promotions for unauthorised persons

The implementation of the new gateway will mean firms need to apply to the FCA if they wish to continue, or intend to start approving financial promotions for unauthorised persons. To date any authorised person can generally approve financial promotions for unauthorised persons.

The consultation (CP22/27) detailed how the regulator intends to operationalise the gateway. This included proposals on how it plans to assess applications, the basis for granting or refusing applications and a bi-annual reporting requirement for firms that are given permission to approve financial promotions.

Firms which could be impacted include those which approve financial promotions for unauthorised firms, and unauthorised firms which currently rely on authorised firms to approve their financial promotions. All these firms should therefore consider how they may be affected and review the proposals very carefully.

Responses to the consultation are requested by 7 February 2023.

The FCA expects to publish its Policy Statement and final rules in H1 2023, though this is subject to the progress of the Financial Services and Markets Bill (which includes the necessary changes to FSMA 2000 to create the new regulatory gateway) receiving Royal Assent.

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