18 June 2014
Download 'Marketing social investments - financial promotion regime' (1MB)
Download 'Marketing social investments - financial promotion regime' - supporting technical manual (1MB)
Download 'Marketing social investments - financial promotion regime' - one pager (1MB)
This new Social Investment Research Council report explores the details of the UK Financial Promotion Regime: the legislative and regulatory rules for making a ‘financial promotion’: an ‘invitation’ to investors to engage in investment activities.
This report seeks to achieve two key objectives. First, it provides an overview and guidance on the practical application of the Regime for social enterprises (investees) and ordinary retail investors. The report unpacks what compliance with the UK Financial Promotion Regime means in practice for investees looking to communicate an investment offer, and ordinary retail investors seeking to make social investments. Second, the report analyses the Regime and considers its implications for investees, investors and the social investment market more widely.
The technical analysis highlights that the Regime presents a number of challenges for investors and investees alike, which risk stifling the growth of the social investment market. It is possible to see how some modest tailored adjustments to the Financial Promotion Regime could enable more retail social investment, whilst still ensuring that ordinary retail investors are adequately protected. The research seeks to identify and outline where such adjustments might be made.