The UK’s Financial Conduct Authority (FCA) is cracking down on misleading financial adverts and has urged social media platforms to be more proactive.
Nearly 20,000 financial promotions were withdrawn or amended in 2024 following intervention from the FCA, nearly double the amount in 2023.
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The City watchdog highlighted particular concerns with cryptoasset, debt solutions and claims management company (CMC) promotions. 9,197 CMC promotions were withdrawn in 2024.
The FCA said it continues to urge social media platforms to do more to proactively identify and prevent illegal financial promotions.
Last year, the FCA took action against ‘finfluencers’, resulting in 20 people being interviewed under caution.
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“Over the past year, we have seen a growing number of misleading and illegal financial promotions,” said Lucy Castledine, director of consumer investments at the FCA. “We have stepped up our efforts in response to make sure that financial 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.”
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Additionally, the FCA has strengthened rules around financial promotions, including a requirement for firms to obtain regulatory permission before approving promotions for unauthorised persons.
The FCA also issued 2240 warnings about unauthorised or potentially scam firms in 2024.
