Context
The FCA has previously been prevented from taking action against online platforms such as Google by EU rules. However, following the UK’s departure from the EU it is now possible for the FCA to hold to account social media companies.
Key points to note
- The EU’s rules on financial advertising did not extend to online platforms such as Google and this loophole was exploited by scammers to post fraudulent adverts online without extra checks.
- The FCA has already issued over 600 warnings about scam firms this year, more than double the number for the same period in 2020
- The FCA has vowed to use new post-Brexit powers to take legal action against Google and other social media companies in a crackdown on online investment fraud.
Next actions
None – for information only