The Financial Conduct Authority (FCA) is not slowing down when it comes to preventing misleading financial promotions, and as a result, it has removed almost 20,000 misleading ads in 2024. This is nearly twice the number removed in 2023, showing the regulator’s heightened scrutiny of financial marketing practices.
Crypto, Debt & Claims at the Forefront
Among the FCA’s key concerns is the increasing level of misleading promotions in areas like cryptoassets, debt solutions, and claims management companies (CMCs). A high 9,197 promotions related to CMCs were withdrawn, a majority of which were on housing disrepair and motor finance claims, targeting mostly vulnerable consumers.
Aside from firm-sponsored promotions, the FCA has focused on the role of social media sites in disseminating misleading financial material.
The regulator has consistently urged stronger controls to keep fraudulent promotions out of consumers’ hands. In the previous year, the FCA ramped up its action against ‘finfluencers’—social media influencers marketing untested financial products, resulting in 20 people being interviewed under caution as part of the investigation.
In order to make financial advertising regulation stronger, the FCA has introduced the Section 21 Gateway, which mandates firms to seek regulatory permission before promoting financial promotions on behalf of unauthorised organisations. The FCA also issued 2,240 warnings in 2024 regarding unauthorised firms possibly carrying out fraudulent activities.
This tough enforcement is in response to increasing concerns regarding deceptive financial advertising, not only in regulated products but also in high-risk alternative investments often resulting in increased mis-sold investment claims.
The Advertising Standards Authority (ASA) recently intervened against land investment schemes that did not emphasise financial risk, further emphasising the necessity of tighter controls on advertising throughout the financial industry. More on the ASA’s recent intervention can be found here: News – Banned! Misleading Land Investment Ads
The enforcement scale has been increasing consistently, with more than 10,000 financial promotions that were misleading changed or withdrawn in 2023, a 17% rise in regulatory intervention from the prior year.
With both the FCA and ASA increasing activities to fight deceitful financial advertising, companies are required to see that their marketing is in adherence to stringent rules of transparency and consumer protection. Non-compliance with these guidelines may lead to serious regulatory sanctions, harming both reputation and legal position.
Our Thoughts
There is no doubt that the promotion of Debt Advice and Unregulated Investments like Crypto can have significant repercussions for people who engage. In the case of debt advice people can end up being convinced to take action which has long term implications on their credit score and ability to borrow money or apply for a mortgage. With unregulated investment like Crypto there is the very real possibility that somebody could lose all of their investment which could be their life savings.
When it comes to claims, we believe that it is essential that people are always aware of how to make a claim themselves and are encouraged to do so.
Solicitors like us who work in claims management are here to provide services for people who lack the time, confidence or inclination to make a claim themselves and our transparent no-win no-fee service ensures that the only implications of pursuing a claim through us is a clearly disclosed percentage of the amount awarded, details of which can be found in our terms and conditions.
You can learn more about, how we work and the type of financial services claims we can assist with .
