On 10 October 2023, we imposed restrictions on rebuildingsociety.com Ltd to restrict it from approving cryptoasset financial promotions.
A full list of the restrictions is set out on the FCA Register here[1].
We have used our powers under section 55L of the Financial Services and Markets Act (FSMA) to impose these restrictions. The FCA can impose requirements on a firm in circumstances where it concludes that it is necessary to do so to advance one or more of the FCA's operational objectives, which includes securing an appropriate degree of consumer protection.
Rebuildingsociety.com Ltd has the right to make representations to the FCA regarding the restrictions. They also have the right to refer the matter to the Upper Tribunal.
I am a consumer who has invested with an unregistered cryptoasset firm who has had its financial promotions approved by rebuildingsociety.com Ltd. What does this mean for me?
The financial promotions regime is designed to protect consumers from misleading and harmful promotions. Unregistered cryptoasset firms can only legally communicate financial promotions to UK consumers if those promotions are approved by an authorised firm.
If unregistered cryptoasset firms’ promotions cease to be approved by an authorised firm, they must cease promoting cryptoassets to UK consumers until such time as they can find an authorised firm to approve their financial promotions.
Consumers who have invested with an unregistered cryptoasset firm who has had its promotions approved by rebuildingsociety.com Ltd should still be allowed to receive communications about their existing assets that will allow them to withdraw, transfer or sell their existing assets.
However consumers will not be able to receive promotions from unregistered cryptoasset firms related to further investment activity.