Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential merits of further regulatory controls by the Financial Conduct Authority to prevent organisations from promoting their products as inherently based around a share index as opposed to other forms of entity such as gambling platforms.

The Financial Services and Markets Act 2000 (FSMA) prevents the communication of invitations or inducements to engage in investment activity or claims management activities (otherwise known as financial promotions) unless the communication is made or approved by an authorised person, or subject to an exemption. The Financial Conduct Authority (FCA) has powers under FSMA to make rules concerning the standards financial promotions must meet. Controlled activities in scope of the financial promotions regime are set out in legislation.

The advertisement of any activities which are not controlled activities is regulated by the Advertising Standards Authority. FSMA also specifies that certain regulated activities can only be carried out by authorised or exempt persons. Offering contracts and/or products with the purpose of securing profit or avoiding loss by reference to fluctuations in an index is a regulated activity and therefore can only be carried out by such persons. Gambling platforms are regulated by the Gambling Commission which requires gambling platforms to comply with Advertising Codes administered by the Advertising Standards Authority.