In 2023, the Financial Conduct Authority (FCA) intervened to withdraw or amend over 10,000 financial advertisements and promotions, marking a 17% increase from the previous year.

The FCA also ramped up its efforts in safeguarding consumers against scams by issuing 2,285 alerts, a significant rise from 2022’s figure of 1,800.

Empowered by newly granted authority from the Government, the regulatory body intensified its crackdown on illicit cryptoasset promotions aimed at UK consumers. Between October 8, 2023, and December 31, 2023, it issued 450 consumer alerts in this regard.

Of particular concern for the FCA is the surge in influencers promoting financial products, such as credit and investments, on social media platforms, often targeting younger demographics.

Lucy Castledine, Director of Consumer Investments at the FCA, emphasized the importance of transparent and accurate information for consumers to make sound financial decisions, asserting the regulator’s commitment to intervening when firms fail to meet minimum standards.

Starting from February 7, 2024, authorised firms must obtain permission from the FCA to endorse promotions for unregulated individuals. This measure ensures that firms endorsing financial promotions possess the necessary competence and expertise for the products and services they endorse.

These efforts align with the Consumer Duty, which took effect in July 2023. Under the Consumer Duty, firms are obligated to furnish consumers with information facilitating effective and informed decisions regarding financial products and services.