Regulatory action intensified in 2024 as the FCA intervened in nearly 20,000 financial promotions, almost doubling the number from the previous year.

The Financial Conduct Authority (FCA) has raised concerns over misleading promotions from cryptoasset firms, debt solution providers, and claims management companies (CMCs). A staggering 9,197 CMC promotions were withdrawn in 2024, many of which targeted vulnerable consumers with housing disrepair and motor finance claim ads.

The FCA is urging social media platforms to take stronger measures against illegal financial promotions. As part of its crackdown, the regulator took targeted action against ‘finfluencers’ last year, leading to 20 individuals being interviewed under caution.

Lucy Castledine, Director of Consumer Investments at the FCA, emphasized the regulator’s commitment to protecting consumers:

*”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 ensure that financial promotions are clear, fair, and accurate.

We expect firms to take the necessary steps to meet standards and will continue to work with other bodies, including social media platforms, to prevent illegal promotions from reaching consumers.”*

To strengthen oversight, the FCA introduced the Section 21 Gateway, requiring firms to secure FCA approval before authorizing promotions for unauthorised parties.

Additionally, the FCA issued 2,240 warnings about unauthorised or potentially fraudulent firms in 2024.