1. Purpose
fair communications
The purpose of this circular is to establish baseline market conduct expectations for client-facing communications. Public materials should be fair, not misleading, and capable of being substantiated.
2. Core communication standards
minimum
- Accuracy: claims must be factual, current, and supportable with evidence.
- Balance: benefits must be accompanied by relevant risks and limitations.
- Clarity: plain language, prominent risk notices, and avoid buried disclaimers.
- Scope alignment: do not describe activities outside the licensed scope.
- Consistency: website, brochures, emails, ads, and partner materials must not contradict each other.
Simple test: If an average client can misunderstand the claim in a way that benefits the firm, rewrite it.
3. Promotions and performance claims
marketing
| Area | Expectation | Evidence / records |
|---|---|---|
| Returns | Do not imply guaranteed profits or “risk-free” outcomes. | Maintain substantiation files; avoid unverifiable screenshots. |
| Backtests | Backtests must be labelled as hypothetical and include key assumptions. | Store parameters, datasets, and method summaries. |
| Testimonials | Do not present atypical outcomes as typical. Label paid endorsements. | Retain consent records and payment disclosures. |
| Bonuses | Bonus terms must be prominent, not hidden in fine print. | Keep term versions and change logs. |
Examples of high-risk wording
“Guaranteed payout”, “No risk”, “100% win rate”, “Authority approved profits”, “Officially protected funds” — these are typically misleading and should be avoided.
4. Conflicts and dealing model transparency
disclosure
- Where the firm acts as principal / market maker, disclose conflicts and how they are managed.
- Explain execution approach (agency vs principal) in a way clients can understand.
- Disclose fees, spreads, commissions, and any material charges in a prominent location.
5. Complaints signposting
client protection
Licensees must provide clear signposting for complaints handling, including minimum response timelines and escalation routes.
- Provide a dedicated complaints page/link in the footer and help sections.
- Explain how clients submit complaints and what evidence is required.
- Where NLA offers a public complaints interface, link to it clearly.
NLA link: Complaints can be submitted via the NLA portal where applicable. Use: /complaints.
6. Records & retention
evidence
- Maintain a register of published marketing materials (date, channel, version, targeting).
- Retain substantiation evidence for factual claims and comparisons.
- Store approvals for high-impact campaigns and affiliate/introducer materials.
7. Cross-references
related