A financial promotion is an “invitation or inducement to engage in investment activity”. A financial promotion may only be issued if it is issued by, or approved for issue by, a person authorised by the Financial Services Authority (FSA).
Entities, including public companies, that are seeking to raise finance from UK investors, by way of either equity or debt, are likely to need advice and assistance concerning the implications of Section 21 of the Financial Services and Markets Act 2000 and subsidiary legislation which govern financial promotions. This is likely to be relevant to any entity considering raising private equity or debt finance or preparing an offer document for the takeover of another entity. The following are specifically excluded from the remit of the legislation:
- Prospectuses prepared in accordance with the UK Prospectus Rules
- Admission documents prepared in accordance with the AIM Rules and PLUS Rules
There are also a number of exemptions available under the legislation for specific types of promotion. We can provide advice on the exemptions available, including how and where they may be applied. In addition, where no exemptions are available, Vantis Corporate Finance Limited is authorised by the FSA and may approve financial promotions for issue, subject to ensuring they comply with the necessary requirements.