Why “Clear, Fair and Not Misleading” Is No Longer Enough
For many years, “clear, fair and not misleading” formed the backbone of financial promotions compliance. It was a familiar standard and, for some firms, a largely technical exercise focused on accuracy and disclosure. In 2026, that approach is no longer sufficient.
The FCA has made it clear that financial promotions now sit firmly within the Consumer Duty framework. Promotions are no longer assessed in isolation, but as a critical part of the customer journey that can either support or undermine good outcomes from the very first interaction.
For the Financial Conduct Authority (FCA), promotions are one of the clearest indicators of a firm’s culture, priorities and approach to consumer protection.
Why the FCA has sharpened its focus
Financial promotions shape customer expectations long before any agreement is entered into. They influence who applies, what customers think they are eligible for, and how they understand risk and cost. When promotions oversimplify, exaggerate or downplay key information, the FCA sees this as the starting point for foreseeable harm.
The regulator has consistently found that many serious conduct issues originate at the promotions stage. These include unrealistic impressions of acceptance, insufficient prominence given to cost or risk, and messaging that prioritises speed or convenience over comprehension. Under Consumer Duty, the FCA’s view is straightforward: if customers are misled at the outset, it is unlikely that good outcomes will follow later.
Consumer Duty raises the bar
Consumer Duty fundamentally changes how promotions are judged. Accuracy alone is no longer enough. The FCA is now asking whether promotions genuinely help customers make informed decisions.
In practice, this means considering how information is presented, not just whether it is technically correct. Firms are expected to think about prominence, balance and context, and to avoid messaging that exploits behavioural biases or financial stress. Promotions should reflect the real customer experience, not an idealised version of it.
This applies across the distribution chain. Lenders remain responsible for how their products are presented, even where third parties are involved. Brokers and intermediaries, in turn, are accountable for their own communications and cannot rely on lender approvals to shield poor or misleading messaging.
Digital and third-party risk
One of the biggest challenges in 2026 is the complexity of digital promotions. Social media advertising, comparison sites, affiliates, influencers and automated targeting all increase the risk that approved messages are adapted, shortened or taken out of context.
The FCA has repeatedly raised concerns that firms lose visibility once promotions move beyond first-party channels. Problems often only surface after complaints or supervisory intervention. As a result, the regulator expects firms to exercise far more active oversight, including regular sampling, monitoring and challenge.
For lenders, this means understanding how promotions appear in practice, not just how they were approved. For brokers, it means taking responsibility for tone and clarity, particularly where multiple lenders or products are involved.
Timing and vulnerability matter
The FCA is also paying closer attention to when promotions are deployed. Campaigns launched during periods of heightened financial pressure — such as Christmas, January or times of wider economic stress — are treated as higher risk.
The regulator expects firms to recognise that consumer behaviour changes during these periods. Messaging that might be acceptable at one point in the year can become problematic when customers are more vulnerable or more likely to make rushed decisions. Promotions should be adapted accordingly, not simply rolled forward unchanged.
Where firms still fall short
Despite years of focus, the FCA continues to see recurring weaknesses. These include promotions that emphasise speed or ease without sufficient balance, claims that imply guaranteed outcomes, and disclosures that technically exist but are unlikely to be noticed or understood.
Governance is another common issue. Promotions are often reviewed in isolation, disconnected from complaints data, arrears trends or product performance. When issues arise, firms struggle to explain how approvals were made or how effectiveness is monitored over time. From the FCA’s perspective, this suggests promotions compliance is still being treated as a sign-off exercise rather than a core conduct risk.
What good looks like now
Firms that are responding well to the FCA’s expectations are taking a more joined-up approach. Promotions are treated as part of the customer journey, not standalone artefacts. Messaging is tested for comprehension, adapted for different channels, and reviewed in light of actual outcomes.
Senior management involvement is also increasing. Boards are being given greater visibility over promotions risk, particularly where issues recur or third-party distribution is significant. This reflects the FCA’s broader message: financial promotions are not just a marketing issue, they are a governance issue.
How ALPH supports firms on promotions and Consumer Duty
ALPH Legal & Compliance supports lenders and brokers in strengthening their financial promotions frameworks in line with Consumer Duty. Our work includes promotions audits across digital and third-party channels, governance and approval framework design, introducer and affiliate oversight reviews, and alignment of promotions strategy with product performance and outcomes data.
In 2026, “clear, fair and not misleading” is no longer the finish line. The FCA expects promotions to actively support good consumer outcomes. Firms that recognise that shift — and embed it into how promotions are designed, approved and monitored — will be far better placed to withstand regulatory scrutiny.