FCA doubles action against misleading financial ads in 2024

In the United Kingdom, a significant increase in misleading financial advertisements has prompted the Financial Conduct Authority (FCA) to take robust action. In 2024, the FCA intervened on just under 20,000 misleading advertisements, marking more than a doubling compared to the previous year. Around half of these ads came from consumer claims companies, which are known to operate on a no-win no fee basis, charging consumers a large portion of any payouts for pursuing claims on their behalf. The FCA's intervention focused predominantly on ads from claims management companies (CMCs), which have seen a rise in number targeting vulnerable consumers facing financial hardships. Among the complaints, issues related to crumbling housing and mis-sold car finance loans were particularly prevalent. The FCA highlighted that nearly 9,200 misleading ads from CMCs were banned due to the agency's increased enforcement efforts, reflecting a disturbing trend in misleading financial promotions. Additionally, the FCA raised alarms over growing concerns about advertisements from cryptocurrency and debt advice companies. Lucy Castledine, director of consumer investments at the FCA, addressed the growing incidence of misleading financial promotions. She emphasized that the FCA had intensified its efforts to ensure that all financial promotions presented to consumers are clear and fair, reiterating that firms must comply with established standards. The FCA has called for better collaboration with social media platforms to proactively identify and remove such misleading or illegal advertisements before they reach consumers. As the volume of these detrimental promotions increases, the FCA's role as a regulator becomes increasingly vital in protecting consumers against misleading business practices.