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Financial Conduc Authority
More than 10,000 financial adverts and other promotions – including those featuring crypto assets – were withdrawn or changed in 2023 after the UK’s Financial Conduct Authority took action. The number rose 17 per cent from the year before.

The regulator said it published 2,285 alerts to help prevent consumers from losing their money to scams, up from 1,800 in 2022. 

Empowered with new measures by the UK government, the FCA said in a statement that it has focused on illegal crypto asset promotions to UK consumers, issuing 450 consumer alerts between 8 October 2023 and 31 December 2023. 

The regulator also flagged its concern at the rise of influencers promoting financial products, including credit and investments on social media which often targets younger age groups. 

The report comes after the FCA reported last week on tackling fraud, money laundering and sanctions evasion.

“People need clear, fair and accurate information to base their financial decisions on. We will continue to intervene and take action when we identify firms not meeting our minimum standards,” Lucy Castledine, director of consumer investments at the FCA, said.

As of 7 February 2024, authorised firms need permission from the FCA if they want to approve promotions for unregulated persons. This ensures that firms approving financial promotions have the required competence and expertise for the promotions being offered.   

The step is underpinned by the Consumer Duty which came into force in July 2023. The Duty requires firms to demonstrate that they are providing consumers with information which helps them to make effective and informed decisions about financial products and services. 

In its 8 February statement, the FCA said that in 2023 the rate of growth of investment fraud “slowed significantly.”

“In 2022, the number of victims grew by 28 per cent and the amount of losses by 53 per cent. By the end of 2023 this had reduced significantly, overall losses were down 40 per cent with the number of investment fraud victims growing slightly, by 4.3 per cent.

“This downwards trend is also reflected in the latest Crime Survey for England and Wales figures, with the Home Office specifically highlighting the FCA’s work with regulated firms and online platforms as key drivers of the decrease,” the FCA said.