Financial promotions and the Law

Because Laybuy is credit, there are strict rules that need to be followed when promoting it. These rules aim to protect vulnerable consumers.

The Financial Services and Marketing Act 2000 (FMSA) requires all financial promotions to be approved by an authorised person. This is known as a s21 approval. An authorised person is a person or business that has been approved by the Financial Conduct Authority (FCA) to approve financial promotions.

The definition of a financial promotion is broad and includes anything that communicates a financial product (such as Laybuy) to a consumer or that might encourage them to use it.

Most mentions of Laybuy will be a financial promotion. This means that they require approval of an authorised person. Examples of financial promotions include banners, POS, billboards, website information, Google ads, emails and posters.

The FCA regulates and oversees compliance and undertakes active monitoring to ensure financial promotions are approved by an authorised person.

Making an unauthorised financial promotion is a criminal offence and can result in the FCA taking enforcement action.