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.”