Further warning from the FCA on Buy Now Pay Later
On Friday 19th August, the Financial Conduct Authority (FCA) wrote to regulated and unregulated firms regarding its concerns around the promotion of BNPL products.
Whilst the products are currently unregulated, they are due to be regulated by the FCA in future. Even at this stage, businesses still need to ensure they do not fall foul of the FCA’s financial promotions rules, meaning the promotions either need to be approved by a regulated firm or businesses need to rely on a relevant exemption from the financial promotion rules.
The FCA’s press release confirms its action so far this year has already led to 4,226 promotions being changed or withdrawn. As the FCA’s strategy of being an assertive regulator continues, including on the edges of the regulatory perimeter, businesses should consider their position carefully.
You can read more about changes to the regulation of BNPL in our previous blog here, and speak to our Finanical Services Regulation team for further guidance.
