Which regulatory guidance states that a firm cannot avoid accountability for their financial promotions?

The correct answer, which highlights the regulatory guidance that firms cannot evade accountability for their financial promotions, is rooted in the Conduct of Business Sourcebook (COBS). COBS is part of the Financial Conduct Authority (FCA) rules that set out the standards for the way financial services firms must conduct their business with clients.

In particular, COBS emphasizes the requirement for firms to provide clear, fair, and not misleading promotions. This means that firms are strictly held accountable for the accuracy and integrity of any financial promotion made to consumers. It ensures that firms cannot just claim that their promotions are the responsibility of another entity or party, reinforcing that they must take full responsibility for what they communicate to potential customers.

The other options, while they also play important roles in regulatory frameworks, do not specifically address the accountability aspect of financial promotions in the same way that COBS does. For instance, FSMA pertains more broadly to the regulatory framework governing financial services in the UK, while APER relates to the principles applicable to individuals in regulated roles. PFO may touch on principles for financial promotions but lacks the specific accountability focus highlighted under COBS.