The Financial Conduct Authority (FCA) has finalised tougher rules to help the marketing of high-risk investments.

Under the new rules, firms approving and issuing marketing must now have appropriate expertise, and firms marketing some types of high-risk investments will need to conduct better checks to ensure consumers and their investments are well matched.

Other incentives, including “refer a friend” bonuses will be banned. Firms will also have to make risk warnings more clear and prominent.

However, the new rules will not apply to cryptocurrency.

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“We want people to be able to invest with confidence, understand the risks involved, and get the investments that are right for them which reflect their appetite for risk,” FCA executive director of markets Sarah Pritchard said.

“Our new simplified risk warnings are designed to help consumers better understand the risks, albeit firms have a significant role to play too.

“Where we see products being marketed that don’t contain the right risk warnings or are unclear, unfair or misleading, we will act.

“This is even more important now because increases in the cost of living could prompt people to chase higher investment returns which may prove risky.”

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