The Financial Conduct Authority (FCA) has ramped up its scrutiny of financial promotions, issuing warnings to firms that fail to comply with advertising rules. In a recent three-month period, the regulator flagged 450 promotions for being misleading or unclear, signalling a tougher stance on consumer protection.
Why the Crackdown Matters
With the cost-of-living crisis putting pressure on household finances, the FCA is determined to ensure consumers aren’t misled by irresponsible financial promotions. The regulator has warned that firms must ensure their ads are fair, clear, and not misleading—or face enforcement action.
Key Areas of Concern
- High-risk investments: Promotions that downplay risks or exaggerate potential returns.
- Buy-now-pay-later (BNPL): Lack of clear warnings about debt risks.
- Cryptoasset promotions: Failure to highlight volatility and regulatory uncertainty.
What Happens Next?
The FCA has made it clear that firms must immediately rectify non-compliant promotions or risk fines and other penalties. Consumers are urged to remain vigilant and report suspicious financial ads to the regulator.
