FCA Publish Quarter 2 Financial Promotions Data
The Financial Conduct Authority (“FCA”) have published the latest data showcasing their supervision of financial promotions between 1 April 2023 and 30 June 2023. The data provides an insight into common risks the regulator observes when monitoring marketing and financial promotions of regulated firms and their appointed representatives.
The data also gives an overview of how the FCA monitor and supervise the financial services market to ensure that consumers are provided with clear and fair financial promotions which are not misleading.
What does the data show?
FCA interventions during Q2 resulted in 1,507 promotions being amended or withdrawn by authorised firms.
Between 1 April 2023 and 30 June 2023 there were 301 financial promotions referred to the FCA for review. These came from a variety of sources such as;
- 39% from consumers
- 20% from UK Regulators
- 16% from different areas of the FCA
- 15% from our proactive monitoring
- 10% from firms
Retailed lending and General insurance and protection firms accounted for 41% and 17% respectively.
The regulator also received 6,387 reports about potential unauthorised businesses issuing financial promotions. The regulator issued 400 alerts on unauthorised firms and individuals. As much as 11% of these were scams impersonating or cloning legitimate regulated firms.
Consumer Duty
On 31 July, the FCA’s Consumer Duty came into force for new and existing products and services that are open for sale or renewal. The Consumer Duty sets higher standards for financial services firms with a new Consumer Principle that requires firms to act and deliver good outcomes for retail customers. The Consumer Duty rules must be considered when firms are building their marketing and financial promotions. Firms must consider the needs, characteristics, and objectives of their customers – including those with characteristics of vulnerability – and how they behave, at every stage of the customer journey.
