The FCA has proposed new measures to clamp down on illegal, unfair or misleading financial marketing.
UK financial promotions
The FCA acted to protect customers from Samweb’s misleading financial promotions and to ensure customers have the confidence of dealing.
The UK Financial Conduct Authority (FCA) amended or withdrew 4,151 financial promotions in the third quarter of 2022.
Retail investments and retail lending are the sectors with the highest amend/withdraw outcomes, the FCA reports.
The FCA has concluded that Freetrade has breached regulations that require financial promotions to be fair, clear and not misleading.
Retail investments’ use of social media influencers on various platforms to market investments is becoming a concern for the FCA.
The new FCA rules seek to improve risk warnings on ads and ban incentives to invest, for example new joiner or refer-a-friend bonuses.
n Q3 of 2021, the FCA reviewed 514 financial promotions, with the regulator ordering 74 promotions to be amended or withdrawn.
The FCA expects to intervene in real-time more often, including, if necessary, turning down more applications for authorisation.
The Government will restrict approval of the financial promotions of unauthorised firms through the imposition of requirements by the FCA.