More than 10,000 financial ads and other promotions were withdrawn or changed in 2023 following intervention by the UK Financial Conduct Authority (FCA), an increase of 17% year-on-year.
The FCA also published 2,285 notices to prevent consumers from losing their money to scams, up from 1,800 in 2022.
After receiving new powers from the government, the regulator has focused on illegal crypto promotions to UK consumers, issuing 450 consumer alerts between 8 October 2023 and 31 December 2023.
The regulator has flagged its concern over the rise of influencers promoting financial products, including credit and investments on social media that often target younger age groups.
From 7 February 2024, authorized firms need permission from the FCA if they want to approve promotions to unregulated people. This ensures that the companies approving financial bids have the required competence and expertise for the bids being offered.
This is supported by the Consumer Duty which came into force in July 2023. The Consumer Duty requires companies to demonstrate that they provide consumers with information that helps them make effective and informed decisions about financial products and services.