The Financial Conduct Authority (FCA) has disclosed on Monday its actions against the financial promotions that were flagged for possible violation of the regulatory rules.
According to the British watchdog, it reviewed 514 financial promotions in the third quarter of 2021. These promotions were identified through both complaints the regulator received and by proactively monitoring the industry activities.
The official announcement detailed that 51% of the total reports were received from customers, 25% came from internal areas of the FCA, and 16% from other UK regulators. The financial markets regulator proactively detected 2% of the complaints, while the firms reported the rest of the 6% complaints.
Retail Investing and Lending Firms Are Top Violators
Retail investing promotion constituted 38% of all the complaints, while retail lending and retail banking came in at 42% and 12%, respectively. The other 8 percent of the complaints were against the promotions of general insurance and protection.
“We undertake many reviews of firms’ financial promotions, which are identified through multiple sources including both consumer and firm referrals,” the FCA noted. “We look at every financial advert reported to us.”
The British watchdog made 26 cases regulating 74 promotions being amended or withdrawn through interaction with authorized firms.
“Where we conclude that an advert is in breach of our rules, we ask the firm which has communicated or approved it to withdraw the advert or change it so that it complies with our requirements. We may also ask firms to consider whether any customers may have acted on the basis of non-compliant promotions and to take appropriate action to remedy any harm which consumers may have suffered as a result,” the regulator.
Meanwhile, New Zealand’s regulator of financial markets also issued updated guidance on the advertisements of financial advertisements, focusing more on the ‘fair dealing’ requirements.
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