UK Regulator Clamps Down on 1,400% More Rogue Financial Ads in 2022 #
In 2022, the UK’s Financial Conduct Authority (FCA) requested 8,582 financial promotions to be amended or withdrawn. Compared to the 573 financial proposals that the agency turned down in 2021, this is about 1,400% more.
The Financial Services Authority also expressed heightened concern about so-called financial institutions, saying it had to take action against many of them in the previous year. In 2022, the regulator also worked closely with many large technology companies. The financial markets regulator has indicated that it wants to ensure that only authorised companies can advertise financial products and services. However, the government agency noted that the IT sector should do more to protect users.
Currently, only approved companies can be authorised to conduct financial advertising on behalf of individuals who do not fall under the FCA’s purview. However, in December 2018, the UK Parliament proposed new legislation that would force FCA-authorized businesses to undergo a new assessment to ensure they are properly approving promotional activities. The FCA said in its most recent statement, which came out on Friday, that work on this issue is still going on.
According to the FCA’s consultation, stricter checks will be introduced for businesses wishing to authorise financial promotion. The FCA said that the changes will make sure that harmful financial marketing by companies and people who don’t have licences will be stopped quickly.
In addition, the FCA announced that the consumer duty will be implemented in July this year. The SEC first proposed the new set of customer obligations for financial businesses in May 2021, and they were supposed to start in July 2022.
According to the FCA’s most recent statement, companies will have to show that they give customers the information they need to make good decisions about financial products and services.