The FCA — the Financial Conduct Authority — regulates how financial products are sold to people in the UK. A financial promotion is any communication that invites or encourages someone to invest; by law it has to be made or approved by an authorised firm, and be fair, clear and not misleading. For higher-risk products the FCA goes further. Since 2019, retail CFDs and spread bets have had leverage caps, automatic close-outs and negative balance protection. Crypto derivatives have been banned for retail customers since 2021, and since 2023 crypto promotions have had to carry prescribed risk warnings, give first-time investors a 24-hour cooling-off period, and come without sign-up bonuses.
Complex products like CFDs and options, and higher-risk investments classed as restricted mass market investments — which include most cryptoassets — generally need an appropriateness test before a new customer can invest: questions that check you understand what you're buying and how it can go wrong. The reasoning is the same throughout. These products are complex, the typical retail outcome has been a loss, and marketing through social media and apps reaches people faster than understanding does. The rules change, so check the FCA's website for the current position, and treat a promotion that skips the warnings as a warning in itself.
Each rule followed evidence that retail customers were losing money. Check the FCA for the current position.
Educational content only. It is not personal financial advice.