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Based in Exeter - working across prop trading firms worldwide

Glossary · Compliance

FCA financial promotion

  • Also called
  • FCA
  • Financial Conduct Authority
  • financial promotions
  • finfluencer
  • section 21 FSMA

What it means

For prop firms marketing to UK residents, the Financial Conduct Authority's financial promotion rules, under section 21 of the Financial Services and Markets Act 2000, restrict communications that invite or induce people into investment activity unless made or approved by an authorized firm or exempt.

Whether a prop evaluation is in scope depends on how the product is structured and described. Marketing that makes the product look like trading real capital, or that promotes trading in specified investments, raises the question more sharply. The FCA has also acted against unauthorized finfluencers promoting financial products on social media.

Firms selling into the UK should take UK legal advice on structure and copy, and apply the same care to affiliate content.

Related terms

Read these next.

Compliance

Marketing claims

Marketing claims are statements a prop firm makes to sell its programs, such as payout totals, pass rates, speed and income; each must be accurate, sourced and not misleading.
Compliance

ESMA

ESMA (European Securities and Markets Authority) is the EU's securities markets authority, which coordinates national regulators and sets common standards for products such as CFDs.
Compliance

Risk disclosure

A risk disclosure is the statement a prop firm publishes explaining that trading is risky, that accounts are simulated where they are, and that results are not typical or assured.
Running the business

Affiliate program

An affiliate program pays partners such as creators, educators and comparison sites a commission on prop firm sales they refer, tracked by links and coupon codes.
Evaluations

Simulated funded account

A simulated funded account is the post-evaluation account a prop firm gives a trader: trades run in a simulated environment and the firm pays performance rewards on results.

On your website

Where this shows up on a prop firm site.

Feature

Trust center

One place for the facts a cautious trader checks: the legal entity, address, people, policies, restricted countries and how payouts work.
Tool

Prop Firm Disclaimer Generator

Draft the simulated-trading and risk disclaimer every prop firm page needs, for your lawyer to review.

Looking for a prop firm to trade with, not a website? Compare firms on PropFirmPal, the comparison site our founder owns.Go to PropFirmPal →

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