The FCA has warned football clubs that they risk putting fans' money at risk by accepting sponsorships from financial firms which have no approval to operate in the UK.
The Financial Conduct Authority (FCA) says that a number of unauthorised firms, including crypto businesses and trading platforms, have been using sponsorships to target football fans who may be unaware the firms are not regulated in the UK.
The watchdog says these unauthorised firms may be breaching UK financial services laws by providing financial services in the UK without authorisation and fans could lose all their money, with no protections in place from organisations like the Financial Services Compensation Scheme.
The FCA has written to football clubs, mostly those in the Premier League, to warn them that their actions and deal with these firm could place fans at risk. It has reminded clubs to be aware 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.”
The FCA has recommended that fans considering using a financially-focused football sponsor firm check their details with the FCA Firm Checker. Firms not on the checker unlikely to be regulated and will have little or no protection for fans.
Using unauthorised financial services firms could expose clubs to legal liability, money laundering risks and "serious reputational damage," the FCA said. The watchdog it expects every UK football club to conduct proper due diligence on financial services sponsors before signing, and on an ongoing basis.
The FCA said: "Where the FCA has already identified concerns, it has spoken directly to the club. Where action is needed, the FCA will take it."
The regulator plans to engage with Government and organisations such as the Premier League and the Independent Football Regulator to tackle the issue.
• Check the FCA Firm Checker.