The UK Financial Conduct Authority (FCA) has issued a warning to soccer clubs in the country, warning them over sponsorship agreements with unlicensed financial firms, such as crypto businesses and trading platforms. According to the regulator, such agreements endanger UK customers’ hard-earned money.
FCA Issued Warning to Several EPL Clubs
In its release, the FCA said that it has issued warnings to a number of soccer clubs who have formed partnerships with unauthorized firms, such as crypto businesses and trading platforms. The authority emphasized that some of these firms’ products may be a violation of Great Britain’s financial services laws due to their provision of financial services without official authorization.
As a result, users of these platforms risk losing all their money without oversight and safeguards.
The FCA noted that most of the clubs it contacted in relation to partnerships with such firms were Premier League teams. The authority said that it reminded the soccer clubs of their responsibility to promote safe entertainment to their fans and not expose them to financial risk.
Fans Were Also Advised to Remain Vigilant
The FCA issued a broader warning to soccer fans, warning them that even if a product is being promoted by an official soccer club, this doesn’t necessarily mean that it is regulated and legal in the UK. The authority encouraged fans to check the FCA Firm Checker to determine if a service is licensed.
Clubs, on the other hand, were asked to think of the potential consequences of dealing with unlicensed financial services firms. The FCA emphasized that such services expose Brits to risk and also expose clubs to legal liability, money laundering risks, and reputational damage.
The regulator asked UK soccer clubs to conduct due diligence on financial service firms before signing an agreement.
Lucy Castledine, FCA’s director of consumer investments, commented on the matter, saying that fans should be able to trust the products promoted by their favorite clubs.
Clubs should not let unauthorised financial firms exploit that loyalty by putting potentially dodgy products in front of millions of fans.
Lucy Castledine, director of consumer investments, FCA
Castledine added that fans should always use the FCA Firm Checker before putting their hard-earned money on the line.
In the meantime, the FCA noted that it has initiative an investigation into certain partnership. It said that it remains committed to tackling potential problems, should some emerge.