On 07 February 2025, the United Kingdom Financial Conduct Authority (UK FCA) published its report detailing its regulatory actions in 2024. The report states that nearly 20,000 financial promotions were withdrawn or amended, marking a 97.5% increase from 2023. The UK FCA stated its concerns surrounding cryptoasset promotions.
The UK FCA identified 9,197 CMC-related promotions in 2024 that were subsequently withdrawn. Many of these promotions pertained to housing disrepair and motor finance claims, which were flagged as misleading. The regulator also issued 2,240 warnings about unauthorised or potentially fraudulent firms. Social media influencers, commonly referred to as ‘finfluencers’, came under increased scrutiny, leading to 20 individuals being interviewed under caution for their involvement in illegal financial promotions.
As part of its enhanced regulatory framework, the UK FCA introduced the Section 21 Gateway, which requires firms to obtain permission before approving financial promotions for unauthorised persons. This measure aims to ensure that financial promotions comply with UK FCA standards before reaching consumers. The regulator also urged social media platforms to take a proactive approach in identifying and preventing the spread of illegal financial promotions.
The number of amended or withdrawn financial promotions nearly doubled compared to 2023. The introduction of new approval requirements under the Section 21 Gateway (The Section 21 Gateway requires firms to obtain UK FCA permission before approving promotions for unregulated persons) and increased action against finfluencers indicate a shift toward tighter control over misleading financial advertisements. The UK FCA has also commenced collaboration with social media platforms and other regulatory bodies for consumer protection and market integrity.
Lucy Castledine, Director of Consumer Investments at the UK FCA, commented, “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 make sure 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 being pushed at consumers.”
(Source: https://www.fca.org.uk/news/press-releases/fca-steps-action-against-misleading-financial-adverts)
