The Financial Conduct Authority (FCA) ramped up its oversight of financial promotions in 2024, leading to the amendment or withdrawal of 19,766 adverts, an increase of 97.5% from the previous year.
The regulator’s intensified intervention reflects growing concerns over misleading promotions related to cryptoassets, debt solutions, and claims management companies (CMCs).
CMC promotions accounted for a significant portion of the FCA’s enforcement actions, with 9,197 adverts removed in 2024. Many of these were linked to housing disrepair and motor finance claims targeting vulnerable consumers.
The regulator also issued 2,240 warnings about unauthorised or potentially fraudulent firms over the course of the year.
Social media platforms remain a focal point of FCA scrutiny, as the regulator continues to push for stronger measures to detect and prevent illegal financial promotions.
In 2024, its crackdown on so-called “finfluencers” led to 20 individuals being interviewed under caution over their involvement in unlawful promotions.
To further strengthen regulation, the FCA introduced the Section 21 Gateway, which requires firms to obtain approval before authorising financial promotions for unregulated entities. The measure aims to reduce the spread of misleading adverts and increase accountability among firms approving financial promotions.
FCA director of consumer investments, Lucy Castledine, said that the rise in misleading financial promotions prompted the regulator to escalate enforcement efforts.
"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," said Castledine.
She said firms are expected to meet regulatory standards and that the FCA will continue working with other bodies, including social media companies, to limit consumer exposure to unlawful promotions.
Beyond social media, the FCA’s enforcement extends to regulated firms, with 46 authorised CMCs required to withdraw a total of 9,197 promotions in 2024.
How should firms and social media platforms adapt to ensure compliance while maintaining consumer engagement? Share your thoughts in the comments.
