FCA's Big Screen Debut Targets Investment Hype

<p>The
Financial Conduct Authority (FCA) is taking a novel approach to consumer
education by premiering a cinema advertisement to raise awareness about the
dangers of investment hype. The ad, which is part of the FCA's InvestSmart
campaign, will be shown during the premium ‘Gold Spot’ just before the feature
film ‘Dumb Money’, a cinematic take on the GameStop investment frenzy of early
2021.</p><p>FCA Debuts Unique Cinema
Ad to Caution againt Investment Hype</p><p>The <a href="https://www.financemagnates.com/tag/fca/" target="_blank" rel="follow">FCA's
</a>cinema ad employs sensory techniques to captivate the audience, initially
presenting what appears to be a "once-in-a-lifetime investment
opportunity." As the ad unfolds, it becomes clear that the anonymous
tipster offering this golden chance is merely typing in an online forum. The ad
concludes with the FCA's cautionary message: "Don't Get Played."</p><p>GameStop is
an American vidego game retailer. The publicly-listed company stocks saw a
surge in trading app accounts in the UK, with over 1 million new accounts
opened in the first few months of 2021, half of which were in January alone.</p><p>Digital
screens in cinema lobbies and geo-targeted online display ads further amplify
the campaign. These additional touchpoints remind cinema-goers before and after
the film about the importance of diligent research before making any investment
decisions.</p><p>The
InvestSmart initiative aims to empower consumers to make investment choices
that align with their financial situation and risk tolerance. Emma Stranack, the
Head of Content and Channels at the FCA, claims that GameStop saga serves as a
textbook case of speculative investment fueled by hype. </p><p>“This new
film gives us the perfect opportunity to encourage less experienced investors
to understand the risks, avoid hype and do the necessary research before they
invest. This is the first time we’ve created a cinema advert tied-in with a
specific film. The subject-matter is directly aligned to our target audience’s
interests and the cinema provides a unique environment to capture their
attention,” added Stranack.</p><p>You can watch the FCA's ad below:</p><p>From Regulating Ads to
Making Them</p><p>The FCA released
the advertisement warning about investment risks just days before new national
regulations on cryptocurrency market advertising take effect.</p><p>The British
government has recently passed laws to oversee the advertising of cryptoassets
to the public. This initiative is designed to shield UK residents from entering
high-risk investments without sufficient knowledge. The updated financial
promotion framework will be applicable to all entities promoting cryptoassets
in the UK, even those headquartered abroad.</p><p>As the
deadline for the new rules looms, and given that crypto companies are grappling
with '<a href="https://www.financemagnates.com/cryptocurrency/fca-crypto-firms-face-significant-challenges-ahead-of-financial-promotions-regime/" target="_blank" rel="follow">significant challenges</a>' in preparation, the FCA has issued <a href="https://www.financemagnates.com/cryptocurrency/the-uks-fca-sends-final-warning-as-crypto-regulation-deadline-nears/" target="_blank" rel="follow">a conclusive alert</a>.
The alert is penned by Lucy Castledine, the Head of Consumer Investment, and
Matthew Long, the Chief of <a href="https://www.financemagnates.com/terms/p/payments/">Payments</a> and Digital Assets, both part of the FCA's
Supervision, Policy, and Competition Division.</p><p><a href="https://www.fca.org.uk/publication/correspondence/final-warning-cryptoasset-firms-marketing-consumers.pdf" target="_blank" rel="nofollow">The alert
advises</a> that companies anticipating non-<a href="https://www.financemagnates.com/terms/c/compliance/">compliance</a> with the new rules should
promptly reevaluate their stance. The FCA emphatically suggests that these
companies consult legal experts to sidestep criminal liability and potential
regulatory repercussions. The updated framework is not designed to limit
consumer access to existing assets but rather to curb additional high-risk
investment behavior.</p>

This article was written by Damian Chmiel at www.financemagnates.com.