Nearly 20,000 financial promotions were withdrawn or amended in 2024 following intervention by the Financial Conduct Authority (FCA).
This was almost double the number from the previous year.
The FCA raised concerns over promotions related to cryptoassets, debt solutions and claims management companies (CMCs).
A significant number of withdrawn promotions (9,197 in total) were linked to CMCs, many involving housing disrepair and motor-finance claims targeting vulnerable consumers.
The FCA has urged social-media platforms to take a more proactive role in identifying and preventing illegal financial promotions.
Last year, the regulator launched targeted action against ‘finfluencers’, leading to 20 individuals being interviewed under caution for promoting misleading financial content online.
Lucy Castledine, director of consumer investments at the FCA, emphasised the authority’s commitment to consumer protection.
“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 promotions are clear, fair and accurate.
“We expect firms to take the necessary steps to meet standards and will continue to work with other bodies, including social-media platforms, to prevent illegal promotions being pushed to consumers.”
Wendy Saunders, partner and co-head of financial services at Lewis Silkin, added: “Proactive engagement by the FCA in getting ads that have the potential to cause financial harm to consumers taken down is to be applauded.
“This move is a significant improvement on its earlier approach, which de facto allowed finfluencers to continue communicating allegedly illegal promotions over a period of nearly three years, before then taking a further three years to prosecute them.”
To further strengthen oversight, the FCA has introduced the Section 21 Gateway, requiring firms to obtain permission before approving promotions for unauthorised individuals.
Additionally, 2,240 warnings were issued against unauthorised or potentially fraudulent firms in 2024.
Consumers are encouraged to report scams and misleading promotions directly to the FCA.
