The Financial Conduct Authority (FCA), the UK’s financial regulator, has reported a significant increase in its intervention against financial promotions, including those related to cryptocurrencies.
In 2023, the FCA withdrew or amended over 10,000 financial adverts and other promotions, a 17% increase compared to the previous year. The regulator also published 2,285 alerts to help prevent consumers from losing money to scams, up from 1,800 in 2022.
Following the government’s grant of new powers, the FCA has focused on illegal cryptoasset promotions targeting UK consumers. Between October 8 and December 31, 2023, the regulator issued 450 consumer alerts against firms engaging in such activities.
The FCA has expressed concern over the rise of influencers promoting financial products, including credit and investments, on social media, often targeting younger audiences.
Lucy Castledine, Director of Consumer Investments at the FCA, said:
“People need clear, fair, and accurate information to base their financial decisions on. We will continue to intervene and take action when we identify firms not meeting our minimum standards.”
As of February 7, 2024, authorized firms require FCA permission to approve promotions for unregulated persons. This measure ensures that firms approving financial promotions have the necessary competence and expertise.
The FCA’s actions are underpinned by the Consumer Duty, which came into force in July 2023. The Consumer Duty requires firms to demonstrate that they are providing consumers with information that helps them make effective and informed decisions about financial products and services.
The FCA has emphasized that it will continue to take robust action against firms issuing illegal financial promotions in 2024.