Football clubs have been warned not to
put their fans' cash at risk by signing sponsorship deals with
financial firms that aren't allowed to operate in the
UK.
According to the Financial Conduct
Authority (FCA), a number of unauthorised firms, including crypto
businesses and trading platforms, are using sponsorship to target
unwitting football fans.
These unauthorised firms may
be breaching UK financial services
laws by providing financial services in the
UK without authorisation. Fans using these firms risk losing
all their money.
The FCA has written directly to
football clubs, mainly in the Premier League, to warn about their
relationships with these firms and remind them of their
responsibilities to fans.
Lucy Castledine, director
of consumer investments at the FCA,
said:
“Millions of football fans trust their club's badge. Clubs should
not let unauthorised financial firms exploit that loyalty by
putting potentially dodgy products in front of millions of
fans.
“A logo on a shirt means one thing: that firm paid for it. Fans
should always check the firm using our Firm Checker tool before
buying a financial product and help us show the red card to those
that would risk your money.”
For fans: what you need to
know
It doesn't matter how prominent the
branding is, which club they sponsor or how professional the app
looks. If the sponsoring firm provides financial services and is
not on the FCA Firm Checker, they are not regulated and you will
likely have no protection if things go
wrong.
You should check any financial
services firm on the FCA Firm Checker before you
use them.
For clubs: what we
expect
Sponsorship deals with unauthorised
financial services firms don't just harm fans. They potentially
expose clubs to legal liability, money laundering risks and
serious reputational damage.
The FCA expects every UK football club
to conduct proper due diligence on financial services sponsors
before signing, and on an ongoing basis. Where the FCA
has already identified concerns, it
has spoken directly to the club. Where action is needed, the FCA
will take it.
The FCA is engaging with the
Government and external partners like the Premier League and the
Independent Football Regulator to tackle this across the
sport.
Notes to
editors
-
The FCA regularly publishes warnings
about unauthorised firms and scams on its Warning List.
-
In
the UK, firms must be authorised by the FCA – or have their
adverts approved by an authorised firm – before they can
promote financial products or services to consumers. Read more
about this here: Regulating Financial
Promotions and Adverts
-
, Sports Minister, said:
"Sponsorship deals play a vital part
in sustaining our football pyramid, but fans deserve to know
that the companies associated with their clubs are responsible,
accountable and safe to use.”
