Is this investment report a financial promotion?
According to the FCA, "a person must not, in the course of business, communicate an invitation or inducement to engage in investment activity (i.e. a financial promotion) unless:
- he is an authorised person; or
- the content of the communication is approved for the purposes of section 21 by an authorised person; or
- the communication is exempt under an order made by the Treasury under section 21(5) – the Financial Promotion Order (as amended)."[1]
For a communication to be considered a financial promotion, the communication must contain an element of invitation or inducement, amongst other things[2]; for a communication to be considered an invitation or inducement, the communication "must both have the purpose or intent of leading a person to engage in investment activity".[3]
The purpose of the said communication (i.e. the ‘THIS thesis investment research report) is to help a person to make better investment decisions (i.e. it’s not lead a person to engage in investment activity). Indeed, the purpose of the communication (i.e. to help a person to make better investment decisions) is reflected in the communication’s monetization strategy (i.e. donations). In other words, the owner of the communication does not benefit from a person engaging in investment activities in the said investment (i.e. THIS); the owner benefits from a person making better investment decisions.
Does this investment report violate any copyright laws?
This question is currently being investigated.