Global: FCA Cracks Down on Misleading Financial Promotions, Nearly Doubling Enforcement Actions

The UK’s Financial Conduct Authority (FCA) took decisive action against nearly 20,000 misleading financial promotions in 2024, almost double the number recorded in the previous year. The regulatory body identified cryptoasset advertisements, debt solutions, and claims management company (CMC) promotions as the primary areas of concern.

A significant portion of these interventions targeted CMC promotions, with 9,197 advertisements withdrawn. Many of these were linked to housing disrepair and motor finance claims that were directed at vulnerable consumers, highlighting ongoing concerns about exploitative marketing practices in the financial sector.

Increased Scrutiny of Social Media and ‘Finfluencers’

The FCA has reiterated its demand for social media platforms to take a more proactive role in identifying and preventing illegal financial promotions. This comes as online platforms continue to be a major channel for misleading advertisements, often reaching consumers who may not be aware of the risks involved.

In response to the growing influence of social media-based financial advice, the FCA intensified its crackdown on so-called ‘finfluencers.’ Last year, the regulator took targeted enforcement action, leading to 20 individuals being interviewed under caution for their role in promoting potentially harmful financial products and services.

Strengthening Consumer Protection

Lucy Castledine, Director of Consumer Investments at the FCA, emphasized the regulator’s commitment to upholding advertising standards in the financial sector:

“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 at consumers.”

As the FCA ramps up enforcement efforts, financial firms and online influencers promoting investment products must ensure compliance with regulatory standards. The crackdown reflects a broader push to enhance consumer protection and curb the spread of misleading financial marketing in the digital age.