The Financial Conduct Authority (FCA) has released
the latest data for the third quarter, highlighting its commitment to
countering misleading financial promotions and addressing unregulated
activities. In Q3, the FCA reviewed 1,211 financial promotions, with 75% being
part of proactive monitoring.
During this period, 5,310 promotions were amended or
withdrawn due to the regulator’s interventions. The retail investments and retail
lending sectors are at the forefront, accounting for 80% of FCA’s
interventions.
According to the report, unauthorized firms have
also been under the FCA‘s watchful eye, with 5,346 reports about potential unauthorized
business received in Q3. The latest data followed the introduction of financial
promotion rules for crypto assets in October 2023, which marked a milestone in
the industry.
In response to the implementation of new
regulations, the FCA issued 488 alerts concerning unauthorized firms
and individuals, underscoring their commitment to maintaining the integrity of
the financial sector. Of particular concern were the so-called “clone
scams,” which accounted for 11% of the alerts. These scams involve
deceptive practices by fraudsters who impersonate authorized firms and
individuals.
In Q3 2023 we reviewed 1,211 financial promotions.
After our intervention with authorised firms 5,310 financial #adverts were amended or withdrawn. 80% of our interventions were in the retail investments and #RetailLending sectors. #FCAData https://t.co/z4bDZDhGSc
— Financial Conduct Authority (@TheFCA) November 3, 2023
However, the introduction of the new marketing rules
has led to challenges in compliance, prompting the FCA to offer clarity and direction. The FCA’s latest guidance, introduced in the wake of legislative
changes, offers a lifeline to crypto asset firms operating in the UK. It helps
them navigate the updated marketing rules, which now fall under the purview of
the FCA.
Lucy Castledine, the FCA’s Director of Consumer
Investments, recently highlighted the FCA’s commitment to industry feedback and
continuous refinement of rules and guidance. While introducing new marketing
rules, the FCA maintains its stance on the high-risk nature of crypto assets.
The regulator has offered a transition period
through “modification by consent” for crypto asset firms to adapt to
the new rules. Besides that, the UK watchdog has initiated a discussion about
the regulation of stablecoin. This step aims to provide clarity and…
