The UK’s
Financial Conduct Authority (FCA) took action against over 10,000 misleading
financial advertisements and promotions in 2023, a 17% increase compared to the
previous year, according to a report published today (Wednesday).
Watchdog Cracks Down on
Misleading Financial Promotions
The
regulator also put out 2,285 consumer alerts about potential scams last year,
up from 1,800 in 2022.
“For unauthorized
firms and individuals, we issued 2,285 alerts in 2023, an increase of 21% from
1,882 in 2022,” the FCA commented.
Since being
granted new powers to regulate crypto assets in October 2023, the FCA has
issued 450 alerts on illegal crypto promotions targeting UK consumers in just
three months.
In
addition, there is growing unease at the FCA over so-called
“finfluencers” – social media influencers promoting various financial
products like loans and investments, often to younger followers.
“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,” said Lucy Castledine, the FCA’s Director
of Consumer Investments.
The FCA
continues running its ScamSmart awareness campaign on investment and pension
fraud. Last year it tackled 43 unauthorized debt solution providers, taking
down 30 websites and social media accounts.
New FCA Measures Came into
Force
From
February 7th, authorized firms now require FCA permission before they can
approve promotions from unregulated persons, to ensure adequate expertise. This
accompanies the Consumer Duty introduced in July 2023, which obliges firms to
provide information enabling consumers to make informed choices.
The UK’s
Financial Conduct Authority (FCA) took action against over 10,000 misleading
financial advertisements and promotions in 2023, a 17% increase compared to the
previous year, according to a report published today (Wednesday).
Watchdog Cracks Down on
Misleading Financial Promotions
The
regulator also put out 2,285 consumer alerts about potential scams last year,
up from 1,800 in 2022.
“For unauthorized
firms and individuals, we issued 2,285 alerts in 2023, an increase of 21% from
1,882 in 2022,” the FCA commented.
Since being
granted new powers to regulate crypto assets in October 2023, the FCA has
issued 450 alerts on illegal crypto promotions targeting UK consumers in just
three months.
In
addition, there is growing unease at the FCA over so-called
“finfluencers” – social media influencers promoting various financial
products like loans and investments, often to younger followers.
“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,” said Lucy Castledine, the FCA’s Director
of Consumer Investments.
The FCA
continues running its ScamSmart awareness campaign on investment and pension
fraud. Last year it tackled 43 unauthorized debt solution providers, taking
down 30 websites and social media accounts.
New FCA Measures Came into
Force
From
February 7th, authorized firms now require FCA permission before they can
approve promotions from unregulated persons, to ensure adequate expertise. This
accompanies the Consumer Duty introduced in July 2023, which obliges firms to
provide information enabling consumers to make informed choices.
