FCA interventions lead to 20,000 amended financial ads in 2024
The U.K. Financial Conduct Authority (FCA) reported a significant increase in the number of financial promotions that were either withdrawn or amended in 2024, totaling nearly 20,000, which is almost double the figure from 2023.
The UK regulator has been particularly concerned with misleading promotions related to cryptoassets, debt solutions, and claims management companies (CMCs). In 2024 alone, 9,197 CMC promotions were retracted, many of which targeted housing disrepair and motor finance claims aimed at vulnerable consumers.
The FCA has been actively urging social media platforms to enhance their efforts in identifying and blocking illegal financial promotions. In the previous year, the authority took targeted action against financial influencers, commonly known as 'finfluencers', which led to 20 individuals being interviewed under caution.
Lucy Castledine, the FCA's Director of Consumer Investments, emphasized the increase in deceptive financial promotions and the corresponding regulatory response. "Over the past year, we have seen a growing number of misleading and illegal financial promotions. We have stepped up our efforts in response to make sure that financial promotions are clear, fair, and accurate," she stated.
Castledine also underscored the expectation for firms to adhere to standards and the FCA's commitment to collaborating with other entities, including social media platforms, to shield consumers from unlawful promotions.
The FCA has bolstered its regulations regarding financial promotions with the introduction of the Section 21 Gateway, which mandates that firms obtain permission from the FCA before they can approve promotions for unauthorised persons. This move is part of a broader strategy to increase oversight and protect consumers from potential financial harm.
Additionally, the FCA issued 2,240 warnings in 2024 about unauthorised firms or possible scams. The FCA continues to encourage consumers to report any suspicious activities or scams to their website, reinforcing their proactive stance in combating fraudulent financial activities and ensuring consumer protection.
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