FCA Acts to Combat Misleading Financial Promotions

Consumers should always be sure that they fully understand any financial product they intend to use and that they only deal with reputable providers. A recent report on steps taken by the Financial Conduct Authority (FCA) in 2024 against misleading financial adverts illustrates the dangers of failing to do so.

Intervention from the FCA led to 19,766 financial promotions being amended or withdrawn in 2024, an increase of 97.5 per cent on the previous year. The FCA has highlighted concerns with promotions relating to cryptoassets, debt solutions and claims management companies: FCA action led to 9,197 claims management company promotions being withdrawn in 2024, many of which were related to housing disrepair and motor finance claims and were aimed at vulnerable consumers.

Rules around financial promotions have been strengthened, including the introduction of the Section 21 Gateway, which requires firms to obtain permission from the FCA before approving promotions for unregulated persons. The FCA also launched targeted action against 'finfluencers': 20 people were interviewed under caution in 2024 following illegal financial promotions on social media.

A total of 2,240 warnings about unauthorised or potentially scam firms were issued in 2024.