The Financial Conduct Authority (FCA) just released new information that shows the regulator stopped more than 8,000 misleading ads and promotions in 2022.
The data showed that the FCA stopped 8,582 misleading ads in 2022, which was 14 times more than in 2021.
The financial watchdog has told companies that post advertising and false information about investments, traders, and financial products to take them down. The FCA has also told Big Tech companies that they need to change how they advertise or they will be shut down.
Due to the dire state of the cost-of-living crisis, the FCA has put a lot of effort into protecting consumers. These consumers are not aware of online payment scams and misleading advertising. The UK’s financial regulator wants to put in place stricter rules for financial promotions to stop unlicensed “fin-fluencers” from taking advantage of people.
The ScamSmart campaign is part of the FCA’s effort to make sure consumers know about threats online and misleading information spread by tech companies and financial firms.
Executive Director of Markets Sarah Pritchard said:
“Our expectations remain the same. Financial promotions must be fair, clear and not misleading. What has changed is the FCA’s approach. By drawing on better technology, we’re finding poor quality or misleading ads quicker. And where we find them, we’re stepping in to make firms improve them or remove them entirely. This year, we will continue to put the pressure on people using social media to illegally promote investments, which put people’s hard-earned money at risk.”
In 2022, the FCA said it would put more checks on financial promotions to stop firms from using misleading marketing.
