This figure is almost double the number recorded in 2023, reflecting increased regulatory scrutiny over misleading advertisements in the financial sector.
The regulator raised particular concerns regarding promotions related to crypto assets, debt solutions, and claims management companies (CMCs). In 2024, a total of 9,197 CMC promotions were removed, many of which were linked to housing disrepair and motor finance claims directed at vulnerable consumers.
The FCA has urged social media companies to take a more proactive role in identifying and preventing illegal financial promotions. The Director of Consumer Investments at the FCA, noted that there has been an increase in misleading and unlawful financial promotions over the past year.
She emphasised that the FCA has intensified its oversight to ensure that advertisements are clear, accurate, and fair. She also stated that firms are expected to comply with regulatory standards, and the FCA will continue to collaborate with other organisations, including social media platforms, to prevent deceptive promotions from reaching consumers.
As part of its efforts to improve oversight, the FCA introduced the Section 21 Gateway, which mandates firms to secure FCA approval before authorising promotions for unauthorised entities. Additionally, the regulator issued 2,240 warnings in 2024 regarding unauthorised or potentially fraudulent firms. Consumers are advised to report suspected scams directly to the FCA.
In a targeted effort in 2024, the regulator focused on so-called 'finfluencers,' leading to 20 individuals being interviewed under caution. At the time, the FCA expressed additional concerns over unlawful promotions in areas such as credit lending and debt solutions.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now