The rule.
“The third condition is that before communicating the direct offer financial promotion”
Verbatim extract, read on 4 November 2026 from the source below. Everything else on this page is NorthPoint’s plain-English reading.
What it requires.
- Before communicating the direct offer, take reasonable steps to establish that the retail client is certified as a high net worth investor, certified as a sophisticated investor, or certified as a restricted investor — in each case in accordance with COBS 4.12A.22R.
- Self-certification as a sophisticated investor is limited to promotions for non-readily realisable securities, P2P agreements, P2P portfolios and LTAF units — not cryptoassets.
Who it applies to.
Firms and registered persons communicating a direct-offer financial promotion for qualifying cryptoassets to retail clients.
Common violations in marketing copy.
Landing page with a 'Buy BTC now' button shown before any investor-type question
The direct offer is communicated before the categorisation step.
☐ I am a sophisticated investor
For cryptoassets the route is certification, not self-certification.
Non-compliant vs compliant.
“Buy now — you can confirm your investor type later.”
“Before you can see our offer, tell us which type of investor you are: high net worth, sophisticated or restricted.”
Related rules.
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COBS 4 Annex 5R · COBS 4.12A.25G · United Kingdom
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COBS 4.12A.28R · COBS 10.1.2R · United Kingdom
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COBS 4.12A.7R · United Kingdom
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UK cryptoasset financial promotions (FSMA s21, the FPO and FCA COBS).
Source.
| Instrument | FCA Handbook, COBS (as amended by the Cryptoasset Financial Promotions Instrument 2023, FCA 2023/27) |
|---|---|
| Provision | COBS 4.12A.21R |
| Primary source | https://www.handbook.fca.org.uk/instrument/2023/FCA_2023_27.pdf |
| Official text | https://www.handbook.fca.org.uk/handbook/COBS/4/ |
| Read from | FCA 2023/27 as made (in force 8 October 2023), read from the FCA Handbook instrument PDF; the consolidated Handbook page is a script-rendered app the build session could not read |
| Checked |
This page is general, sourced information for marketing teams, not legal advice. The examples are written by NorthPoint to illustrate the rule; for a binding view on your own promotion, retain qualified counsel in the jurisdiction concerned.