In 2024, a notable increase in actions taken against misleading financial promotions was reported, with nearly 20,000 financial ads being either amended or withdrawn. This number is almost double the actions taken in the previous year. A specific focus was placed on promotions associated with cryptoassets, debt solutions, and claims management companies (CMCs). The CMC sector saw substantial involvement, with 9,197 promotions withdrawn, many of which targeted vulnerable consumers in areas like housing disrepair and motor finance claims.
The total number of financial promotional adjustments reached 19,766, marking a staggering 97.5% rise compared to 2023. As a part of this initiative, promotions from 46 authorized CMC firms were involved in the withdrawal process.
The regulatory body expressed its continued concern over the role of social media platforms in financial promotions. There is an ongoing push for these platforms to proactively mitigate the risks associated with illegal financial promotions. Last year, a concerted effort against so-called “finfluencers” led to the questioning of 20 individuals regarding their promotional activities.
A representative from the regulatory authority noted the significant uptick in misleading and illegal financial advertisements over the past year and emphasized the importance of ensuring that all financial promotions are transparent, fair, and accurate. There is a clear expectation that firms will align with required standards, alongside a commitment to collaborate with various organizations, including social media networks, to reduce the incidence of unlawful promotions targeting consumers.
In response to the rising threat of misleading promotions, the agency has reinforced its regulations regarding financial advertisements. One major change includes the introduction of the Section 21 Gateway, which mandates that firms must secure permission from the agency before their promotions can be approved for unauthorized individuals.
Additionally, 2,240 warnings were issued about unauthorized or potentially fraudulent firms throughout 2024, further contributing to consumer safety. Consumers are actively encouraged to report any suspected scams to help combat this growing issue.
The data reflects a serious commitment to protecting consumers from misleading financial advertisements, aiming to create a safer financial landscape.