FCA Cracks Down on Rogue Financial Promotions among Trading Firms

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The Financial Conduct Authority (FCA) released the data
for financial promotions for the second quarter. In the report, the regulator
disclosed that retail investments and the lending sector had the most number of
amended promotions.</p><p>According to the data
generated between April 1 and June 30, FCA's interventions resulted in
1,507 promotions being amended or withdrawn by the regulated entities. Besides
that, FCA issued 400 alerts on unauthorized firms and individuals, of which
11% of them were clone scams.</p><p>FCA's Reviews</p><p>Of the 301 financial
promotions reviewed by the FCA, 39% were from consumers, and 20% were from UK's regulators. The financial promotions reviewed from the different areas of the
FCA, from proactive monitoring, and from companies were 16%, 15%, and 10%,
respectively.</p><p>In June, the regulator
released rules and regulations for companies promoting <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/">cryptocurrencies</a> in the
UK. Thus the regulator has cautioned companies not to break the regulations,
which are expected to be implemented on October 8. One of the provisions in the
legislation is that the regulator wants digital asset companies to ensure that
their investors have the necessary knowledge before investing in digital assets. </p><p>Social Media Ads</p><p>In July, <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a> reported that FCA had strengthened its efforts to prevent financial promotions that do not comply with the regulations. Additionally, the regulator has tightened rules related to the advertisement of financial services on social media platforms like TikTok and Instagram.</p><p>Lucy Castledine, the Director of consumer investments at the FCA, said: "We have seen a number
of advertisements falling short of the guidance we have to stop harm to consumers. We want
people to stay on their right side of our rules, so we are updating our
guidance to clarify what we expect of firms when <a href="https://www.financemagnates.com/terms/m/marketing/">marketing</a> financial products
online." </p><p>In
the past, the FCA has gone a step further to remove what it considers <a href="https://www.financemagnates.com/forex/brokers/fca-orders-freetrade-to-pull-down-misleading-social-media-promotions/" target="_blank" rel="follow">misleading advertisements</a> on social
media. Additionally, the regulator has banned some of the incentives that prompt people
to invest in digital assets.</p>

This article was written by Jared Kirui at www.financemagnates.com.