| Link(s): | https://www.fca.org.uk/news/speeches/rise-scams-and-threat-legitimate-financial-services-industry |
Context
Executive Director of Enforcement and Market Oversight, Mark Steward, gave a speech at the City & Financial Global – FCA Investigations & Enforcement Summit. The speech covered four main areas: the rise in unregulated advertisements, updating the FCA’s approach, the evolution of social media and the FCA’s role’ and the role of the industry
Key points to note
- The FCA has a substantial role to play in preventing harm to consumers from unauthorised activities and it has made improvements to address scams as they are happening.
- While the FCA does have statutory power over the use of false or misleading statements in relation to securities, those offences will not bite where the investment product is outside the financial promotions perimeter. The perimeter, or perimeters (there are more than one), is an intricate boundary that can produce different results in terms of regulatory power, consumer protection and outcome, depending on some equally technical distinctions. Despite these circumstances, the FCA remains very active and engaged in tackling the scourge of investment fraud in this country.
- However, firms should be doing more to prevent harm also and regulated firms who let down their guard, especially in assisting firms on the FCA’s Warning List, may well face action from the Regulator for doing so as well.
- The FCA continues to engage with online platforms to ensure harm is prevented.
Next actions
None – for information only