The FCA has published its Q4 2024 financial promotions data, along with analysis and insights into the data, along with a commentary web page.
The regulator voiced concerns specifically regarding crypto asset, debt solutions, and claims management company (CMC) promotions. In 2024, a total of 9,197 CMC promotions were withdrawn, many of which were related to housing disrepair and motor finance claims targeted at vulnerable consumers.
In total, almost 20,000 financial promotions were withdrawn or amended in 2024 following FCA intervention—nearly double the number recorded in 2023, highlighting increased regulatory scrutiny over financial promotions and advertisements within the financial services sector.
The FCA once again called on social media platforms to do more to proactively identify and prevent illegal financial promotions. Last year, 20 finfluencers were interviewed under caution following illegal financial promotions on social media.
The FCA has ‘accepted’ voluntary requirement requests from 18 firms and has used its ‘own initiative’ powers on two firms to restrict their ability to communicate or approve financial promotions.
For unauthorised firms and individuals, the FCA also revealed it issued 2,240 alerts in 2024; whilst a decrease of 2% from the 2,286 recorded in 2023, numbers remain high compared to historic levels.
The FCA has used data and technology to increase its capacity to identify and assess around 480,000 new websites that could be providing or promoting financial services or products without permission. This has resulted in reviews of just over 3,700 websites and social media platforms and over 1,600 alerts to warn UK consumers of unauthorised firms.
To further strengthen oversight, the FCA introduced the Section 21 Gateway, requiring firms to obtain permission before approving promotions for unauthorised individuals.
Lucy Castledine, Director of Consumer Investments at the 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 to consumers.’
The Q4 2024 data sets out examples of FCA interventions and actions— in effect setting out what the firms in the examples had got wrong. Whilst only 6% of financial promotions cases within the Q4 data relate to general insurance and protection, all firms should review the findings of the FCA’s data to ensure financial promotions remain compliant and, ultimately, protect consumers from harm.
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About the author
Rebecca Matyear
Rebecca recently joined us in 2024 as a Senior Content Writer and has experience researching and creating multimedia content. With a keen interest in current and emerging industry affairs, Rebecca responds through a critical lens and, by promoting thought and discussion, aims to increase awareness of UKGI’s work.
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