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FCA cracks down on misleading financial promotions

The FCA has stepped up its efforts to crack down on misleading financial promotions as new data shows the regulator intervened almost every day to ask firms to change or withdraw their adverts.

Research from regulatory consultants Bovill shows the FCA asked firms to change or withdraw 328 financial promotions in the 12 months to June, up 61 per cent from 204 in the previous year.

Bloomberg reports the regulator has targeted specific sectors including payday loans and debt management after taking over responsibility for consumer credit in April.

Bovill head of wealth management Mark Spiers says firms can easily overstep the mark in a “tricky” FCA environment.

He says: “This sharp jump shows the FCA is scrutinising ever more intensively how the financial promotion rules are being applied.”

The FCA says: “Promotions that fail to be ‘fair, clear and not misleading’ can lead consumers to buying the wrong product – ultimately with unhappy outcomes for them and for firms. We continue to take action to have removed or changed promotions that run the risk of misleading consumers.”


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There are 5 comments at the moment, we would love to hear your opinion too.

  1. Pardon? Well they seem to have missed the latest ads from Santander. 123 account – fair and simple? Advertised at 3% up to £20k, but what the don’t say on TV is that you have to pay in a minimum amount per month and have 2 direct debits and that they charge £2 per month for the account. So if you assume a £500/month deposit with 2 DDMs of £50 each then after £12 months the interest rate actually works out at around 1.13% – and that’s taxed.

    Again it would seem the regulator goes for the low hanging fruit first. (assuming that they even notice the other stuff until the has been a bru-ha).

  2. I agree with Harry on this.

  3. And while they are at it why don’t they have a pop at MAS for imply that they are set up by the Government. This implies level of State backing that it does not have.

  4. Why doesn’t someone make a complaint then!

  5. @ Peter Flowers

    Have done – but it shouldn’t be necessary if the regulator was on the ball.

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