UK Regulator Clamps Down on 1,400% More Rogue Financial Ads in 2022

The UK Financial Conduct Authority (FCA) has rejected 8,582 financial promotions in 2022, requiring them to be modified or removed by approved companies. That’s about 1,400% more than the 573 financial promotions the regulator has banned in 2021.

The FCA released figures in a statement on Friday, noting that it issued more than 1,800 fraud alerts last year to protect investors from fraudsters.

The increase in intervention comes as financial market regulators say they have made “significant improvements to the digital tools” they deploy to spot problem companies and their misleading advertising. This will allow regulators to work on more cases than he did in 2021.

Additionally, the FCA said it has had to take action against several finfluencers over the past year, raising concerns about ‘finfluencers’. The regulator has also “worked closely” with several big tech companies in 2022. The goal, according to financial markets regulators, was to change advertising policies to only allow financial promotions approved by approved companies. But regulators said tech companies need to do more to protect consumers.

Under the FCA’s current regime, only authorized companies can approve financial advertising on behalf of companies not under its supervision. However, last December, the UK Parliament proposed a new policy requiring FCA-accredited companies to undergo a new assessment to ensure that promotional campaigns are properly approved. The FCA said in a new statement issued on Friday that work on this is still ongoing.

“The FCA is currently in talks to introduce stricter checks on companies wishing to approve financial promotions. This measure will allow the FCA to quickly stop harmful financial promotions by unauthorized companies and individuals. ,” the regulator noted.

Furthermore, the FCA said it would introduce a “sales tax” in July this year. The regulator first proposed a new set of consumer taxes for financial institutions in May 2021 and had previously set a date to start implementation in July 2022 after public consultation.

“Companies must demonstrate that they provide consumers with information that helps them make effective and informed decisions about financial products and services,” the FCA said in a new statement. explains.

The UK Financial Conduct Authority (FCA) has rejected 8,582 financial promotions in 2022, requiring them to be modified or removed by approved companies. That’s about 1,400% more than the 573 financial promotions the regulator has banned in 2021.

The FCA released figures in a statement on Friday, noting that it issued more than 1,800 fraud alerts last year to protect investors from fraudsters.

The increase in intervention comes as financial market regulators say they have made “significant improvements to the digital tools” they deploy to spot problem companies and their misleading advertising. This will allow regulators to work on more cases than he did in 2021.

Additionally, the FCA said it has had to take action against several finfluencers over the past year, raising concerns about ‘finfluencers’. The regulator has also “worked closely” with several big tech companies in 2022. The goal, according to financial markets regulators, was to change advertising policies to only allow financial promotions approved by approved companies. But regulators said tech companies need to do more to protect consumers.

Under the FCA’s current regime, only authorized companies can approve financial advertising on behalf of companies not under its supervision. However, last December, the UK Parliament proposed a new policy requiring FCA-accredited companies to undergo a new assessment to ensure that promotional campaigns are properly approved. The FCA said in a new statement issued on Friday that work on this is still ongoing.

“The FCA is currently in talks to introduce stricter checks on companies wishing to approve financial promotions. This measure will allow the FCA to quickly stop harmful financial promotions by unauthorized companies and individuals. ,” said the regulator.

Furthermore, the FCA said it would introduce a “sales tax” in July this year. The regulator first proposed a new set of consumer taxes for financial institutions in May 2021 and had previously set a date to start implementation in July 2022 after public consultation.

“Companies must demonstrate that they provide consumers with information that helps them make effective and informed decisions about financial products and services,” the FCA said in a new statement. explains.