The Financial Conduct Authority (FCA) is continuing to crack down on misleading financial promotions, stating last week that in 2024 its actions led to the withdrawal or amendment of nearly 20,000 advertisements, almost double the 2023 figure.
The FCA Increases Action Against Misleading Financial Adverts
The regulator has particularly focused on cryptoasset firms, debt solution providers, and claims management companies (CMCs).
The FCA reported that 9,197 CMC promotions were withdrawn, many linked to housing disrepair and motor finance claims targeting vulnerable consumers.
Additionally, the regulator said it has ramped up enforcement against “finfluencers,” resulting in 20 people being interviewed under caution, and said it continues to urge social media platforms to do more to identify and prevent illegal financial promotions.
Lucy Castledine, Director of Consumer Investments at the FCA, stated: “Over the past year, we have seen a growing number of misleading and illegal financial promotions. We have stepped up our efforts in response to make sure that financial promotions are clear, fair, and accurate.“
To combat misleading promotions, the FCA revealed it has strengthened financial advertising rules, including the introduction of the Section 21 Gateway, requiring firms to obtain FCA approval before endorsing adverts for unauthorised entities.
The regulator also issued 2,240 warnings about unauthorised or potentially fraudulent firms in 2024.
