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FCA speech – “The risks of token regulation”

Link(s):https://www.fca.org.uk/news/speeches/risks-token-regulation

Context

Charles Randell, Chair of the FCA and PSR, gave a speech to the Cambridge International Symposium on Economic Crime on 6th September 2021.

Key points to note

  • While platforms’ efforts to crack down on fraudulent advertisements are welcome, a permanent and consistent solution to the problem of online fraud from paid-for advertising requires legislation.
  • Charles gave the example of Google, who have committed to stop promoting advertisements for financial products unless an FCA authorised firm has cleared them.
  • He stated “online platforms should expect a future where regulation addresses the significant risks they pose in the same way as other businesses. Same risk, same regulation”.

Next actions

None – for information and awareness, but this is a further indicator of a regulator that is committed to introducing rules and guidance that are specific and targeted, and that give the regulator a firmer basis for action.