| Link(s): | Financial watchdog stops thousands of misleading ads and promotions | FCA Financial promotions quarterly data 2023 Q4 | FCA Financial promotions data 2023 | FCA |
Context
The FCA has published data highlighting that over 10,000 financial adverts and other promotions were withdrawn or changed in 2023 following its intervention, an increase of 17%, year-on-year. It also published 2,285 alerts to help prevent consumers from losing their money to scams, up from 1,800 in 2022.
Key points to note and next actions
After being given new powers by the Government, the FCA has focused on illegal cryptoasset promotions to UK consumers, issuing 450 consumer alerts between 8 October 2023 and 31 December 2023.
The FCA has highlighted its concern at the rise of influencers promoting financial products, including credit and investments on social media which often targets younger age groups.
Lucy Castledine, Director of Consumer Investments at the FCA, said: “People need clear, fair and accurate information to base their financial decisions on. We will continue to intervene and take action when we identify firms not meeting our minimum standards.”
As of 7 February 2024, authorised firms need permission from the FCA if they want to approve promotions for unregulated persons, making sure firms approving financial promotions have the required competence and expertise for the promotions being offered. This is underpinned by the Consumer Duty which requires firms to demonstrate they are providing consumers with information which helps them to make effective and informed decisions about financial products and services.