The FCA has significantly increased its vigilance over financial promotions in the UK, with almost 20,000 adverts either withdrawn or amended in 2024—a substantial rise from the previous year.
This heightened regulatory action comes amid growing concerns over promotions related to cryptoassets, debt solutions, and claims management companies (CMCs). Notably, a staggering 9,197 CMC promotions, often targeting vulnerable consumers with offers related to housing disrepair and motor finance claims, were withdrawn.
The FCA’s efforts extend beyond reactive measures. It has been proactively engaging with social media platforms to curb the spread of illegal financial promotions. This initiative also includes action against influencers promoting financial products without proper authorisation, leading to 20 individuals being interviewed under caution last year.
Lucy Castledine, Director of Consumer Investments at the FCA, emphasized the regulatory body’s commitment to ensuring that financial promotions are transparent and truthful. “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,” she stated. Castledine further highlighted the FCA’s expectations that firms comply with standards and work collaboratively to prevent deceitful promotions from reaching consumers.
In strengthening regulatory frameworks, the FCA introduced the Section 21 Gateway, necessitating firms to secure FCA permission before approving promotions for unauthorised entities. Moreover, the authority issued 2,240 warnings regarding unauthorised or potentially fraudulent firms in 2024 alone.
Consumers are urged to remain vigilant and report any suspicious activities to the FCA, reinforcing the collective effort to maintain the integrity of the UK’s financial promotions landscape.
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