This note has been updated to reflect the new UK regulatory structure, with effect from 1 April 2013 and amendments to the Financial Services and Markets Act 2000 (FSMA) made by the Financial Services Act 2012.
This term is not referred to in the Financial Services and Markets Act 2000 (www.practicallaw.com/A36104) (FSMA) but is commonly used to describe where a person, acting in the course of business, communicates an invitation or an inducement to engage in investment activity. FSMA contains a basic prohibition on financial promotion communicated by persons who are not authorised persons (www.practicallaw.com/A35876), subject to specified exemptions (section 21).
This term also has an additional meaning in relation to certain paragraphs of the Conduct of Business sourcebook (www.practicallaw.com/7-107-5977), in which it means a marketing communication within the meaning of the Markets in financial instruments directive (MiFID) (www.practicallaw.com/0-200-9292) made by a firm in connection with its MiFID or equivalent third country business.
The glossary to the FCA Handbook (www.practicallaw.com/5-107-6609) sets out the full definition of this term. When considering this term in the context of financial services, reference should be made to the FCA Handbook glossary definition of financial promotion.