The Treasury is consulting on a change to the financial promotion regime that would require FCA authorised firms that approve financial promotions on behalf of unauthorised firms to have a specific approval from the FCA .  This is likely to place an additional administrative burden on authorised firms.  The justification given is that it would give the FCA more oversight over the financial promotion regime in order to assess the suitability and competence of authorised firms - with the benefits to consumers outweighing the additional burden to the industry.

The process for authorising a financial promotion can already be onerous and costly, especially for smaller companies seeking to raise smaller amounts.  The risk of more regulation is that an increased cost of approval may put fundraising of smaller amounts beyond the reach of small and micro cap companies where one of the exemptions is not available.