Key points include:
➡️ Unauthorised Firm Exposure: The FCA identified several unauthorised financial firms using sponsorship arrangements with football clubs to increase visibility and attract UK customers;
➡️ Consumer Protection Risks: Fans engaging with unauthorised firms may have limited regulatory protections and risk losing all their money if products or services fail;
➡️ Financial Crime Concerns: The FCA warned that sponsorship arrangements with unauthorised firms can expose clubs to money laundering, fraud and broader financial crime risks;
➡️ Due Diligence Expectations: Clubs are expected to conduct robust due diligence on prospective financial services sponsors before entering agreements and throughout the sponsorship lifecycle; and
➡️ Cross-Sector Collaboration: The FCA is working with Government, the Premier League and the Independent Football Regulator to address the issue across the football sector.
✅ Firms should review their policies relating to commercial relationships, ensuring due diligence and reputational risk management controls adequately identify regulatory, financial crime, and consumer risks throughout the relationship cycle.