CurveBlock
The FCA defines a financial promotion as any communication that invites or induces investment activity. For fractional property and renewable platforms, that covers advertisements, webpages, email campaigns and social media posts that describe investment opportunities. If an offer relates to a regulated activity or a security, it must be communicated by an authorised person or be approved by an authorised person before being distributed to retail clients. This requirement is intended to protect consumers from misleading or incomplete marketing.
Key expectations include fair, clear and not misleading communications, appropriate risk warnings, and disclosures that enable consumers to understand charges, liquidity constraints and the nature of legal entitlements. The FCA’s rules also interact with the Consumer Duty and the rules on financial promotions to require suitability of communication for the target market; promotional material aimed at retail investors must avoid technical jargon without explanation and must not obscure downside risks.
Platforms must also consider restrictions on cold-calling, social-media amplification, and the use of testimonials or performance illustrations. Where tokenised shares or digital securities are involved, platforms should make clear the legal form of the interest (security, unit in a collective scheme, or other), how custody and voting operate, and any secondary market limitations. Record-keeping for approvals and scripts is critical for regulatory oversight.
For retail investors considering fractional digital shares, financial promotion rules matter because they determine the baseline information, risk framing and approvals that should accompany any offer — helping consumers to compare and understand what they are being invited to buy.