Context
The FCA has published its Financial Promotions data for January to March 2024. It sets out the FCA’s actions against firms breaching financial promotion rules, and referrals and investigations into unregulated activity.
Key points to note and next actions
What is included in the data?
- Key messages.
- Authorised firms:
- number of financial promotions reviewed during this period; and
- number of closed cases where promotions have been amended and withdrawn, including split across sectors, excluding cases which are still ongoing (general insurance and protection represented 6%).
- Unauthorised firms:
- number of unauthorised reports received, and alerts issued.
- Examples of our work on financial promotions during 2024 Q1:
- reducing and preventing serious harm;
- setting and testing higher standards; and
- promoting competition and positive change. Information on how to report a misleading financial advert or potential scam.
Key messages
- FCA interventions in 2024 Q1 resulted in 2,211 promotions being amended or withdrawn by authorised firms.
- The FCA issued 597 alerts on unauthorised firms and individuals; 11% of these were clone scams.
- On 8th January 2024, the modification by consent – which delayed the start of the Direct Offer Financial Promotion (DOFP or ‘back end’) rules introduced by Policy Statement 23/6 – ended. The FCA is conducting reviews to test the level of compliance with these rules and will act where it sees breaches, using its supervisory tools and potentially enforcement action, where necessary.
- On 7th February 2024, the financial promotions approval gateway came into effect. This means that firms that wish to approve financial promotions on behalf of unauthorised firms outside of their group must apply to the FCA for approver permission. Firms that submitted an application before 7th February can benefit from transitional arrangements allowing them to continue approving promotions while their application is being considered. Reporting requirements also came into effect from 7th February for all firms with approver permission or benefitting from the transitional arrangements.
- The FCA proactively reviewed the marketing and promotions of claims management firms for housing disrepair claims. In Q1 2024, following its engagement with seven authorised firms, this resulted in 83 amendments/withdrawals. Alongside this, the FCA is focussing its work regarding unauthorised firms; working to remove unlawful financial promotions.
For the first time, the publication of these results includes examples of the FCA’s interventions and examples of good and poor practices for the monitoring and oversight of affiliate marketers, such as influencers.