The Financial Conduct Authority (FCA) took increased action against misleading financial adverts in 2024, leading to the withdrawal or amendment of nearly 20,000 financial promotions – almost double the number recorded in 2023.
The regulator identified cryptoassets, debt solutions, and claims management companies (CMCs) as particular areas of concern, with misleading promotions often targeting vulnerable consumers.
A total of 9,197 CMC promotions were withdrawn, many of which were linked to housing disrepair and motor finance claims.
CALLS FOR GREATER SOCIAL MEDIA ACCOUNTABILITY
The FCA has urged social media platforms to take a more active role in identifying and preventing illegal financial promotions. In 2024, the regulator launched targeted enforcement action against financial influencers, or ‘finfluencers’, resulting in 20 individuals being interviewed under caution.
Lucy Castledine, director of consumer investments at the FCA, said the regulator had intensified its response to misleading promotions in an effort to protect consumers.
“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 said.
“We expect firms to take the necessary steps to meet standards and will continue to work with other bodies, including social media platforms, to prevent illegal promotions being pushed to consumers.”
STRENGTHENED REGULATORY CONTROLS
To improve oversight, the FCA has introduced stricter rules on financial promotions. One of the key changes is the Section 21 Gateway, which requires firms to obtain FCA permission before approving promotions on behalf of unauthorised individuals.
The regulator also issued 2,240 warnings about unauthorised or potentially fraudulent firms in 2024 as part of its broader strategy to crack down on financial scams.
The FCA has reiterated its commitment to ensuring that all financial promotions meet regulatory standards and has warned that firms failing to comply will face enforcement action.
