Context
The FCA has published data and analysis from its action against authorised firms breaching financial promotion rules, and referrals and investigations into unregulated activity, between 1st July 2022 and 30th September 2022.
Key points to note
During Q3 2022:
- The FCA reviewed 340 promotions, of which 39% were referred by consumers, 22% from firms, 20% from different areas of the FCA, 17% from UK Regulators and 2% from proactive monitoring.
- FCA engagement resulted in 4,151 amends/withdrawals.
- The sectors with the highest amend/withdraw outcomes are retail lending (46%), retail investments and retail banking which, together, total 95% of the FCA’s interventions with authorised firms.
- Some of the most common breaches involved credit brokers, e-money providers and CFD providers.
- The FCA issued 303 alerts about unauthorised firms and individuals, with 20% of these related to clone scams.
- A Dear CEO letter was issued from the FCA to circa 27,000 firms and a similar letter sent to The British Retail Consortium (BRC) to reach unregulated merchants and retailers. The letter warned firms offering Buy Now Pay Later (BNPL) products that although some agreements are unregulated the financial promotions of all BNPL products must comply with the financial promotion rules.
Next actions
None – for information and awareness.