UK FCA Releases Financial Promotions Data in 2021

In line with its Consumer Investments Strategy, publishing this data allows it to be transparent about the outcomes FCA is seeking to achieve with its financial promotions interventions and the results of its work. The strategy sets out the steps that FCA is taking to be more innovative, assertive and adaptive in tackling harm. This includes strengthening the financial promotions regime. However, it should be noted that this data relates to financial promotions across all sectors, not just consumer investments. 

The data also means FCA can monitor developments in the market, to get insights into particular sectors the regulator has concerns about and act to prevent consumers from harm.

What's included in the data

key messages for regulated and unregulated financial promotion activity

number of financial promotions reviewed during this period

number of cases with promotions amended and withdrawn including split across sectors, this relates to closed cases and excludes cases which are still ongoing  

number of unauthorised reports received and alerts issued

how FCA act

Key messages

In relation to authorised firms, last year saw an increase in approx. 300 amends/withdrawals of promotions, compared to around the same number of cases as 2020:

retail investments and retail lending are the sectors with the highest amend/withdraw outcomes, amounting to 77% of FCA's interventions with authorised firms

some of the most common breaches were in the Retail Lending sector, in particular Claims Management Companies' and Retail Finance promotions

retail investments' use of social media influencers on various platforms to market investments is becoming a concern for FCA. Firms should ensure they have taken appropriate legal advice to understand their responsibilities prior to using influencers.

In relation to illegal financial promotions by unauthorised persons, last year saw an overall increase of 10% of total reports received compared with 2020:

FCA issued 1410 alerts about unauthorised firms and individuals in 2021, an increase of 18% from 2020, with 30% of these related to clone scams

FCA has seen a significant reduction in non-compliant paid for advertisements by unauthorised entities on Google since its engagement and the implementation of their new financial services ad policy

Authorised firms

Number of promotions reviewed

In 2021, 1,686 financial promotions from multiple sources were reviewed.

46% from consumers

25% from different areas of the FCA

16% from UK Regulators

6% from firms 

5% from FCA's monitoring

Table 1: Number of cases with promotions amended and withdrawn including split across sectors

​Figure 1 shows how the cases in 2021 which resulted in firms withdrawing or amending a promotion are spread across different sectors.

Unauthorised firms

Number of reports received

In 2021, 34,244 reports were received about potential unauthorised business.

The number of alerts issued about unauthorised firms and individuals totalled 1,410, an increase of 18% from 2020. Just under 30% of these alerts related to clone scams. Many of these involved breaches of the financial promotion restriction online. In exceptional cases, the regulator requests that any linked websites and/or social media accounts identified as carrying illegal content are taken down.

Whilst FCA has seen a significant reduction in non-compliant paid for advertisements by unauthorised entities on Google since its engagement and the implementation of their new financial services ad policy, FCA is continuing engagement with other social media platforms and continuing to monitor the online market carefully and update its Warning List as appropriate.

How FCA act

For authorised firms, FCA uses a range of tools available, including agreeing to voluntary or imposing own initiative requirements, requiring the firm which has communicated or approved the advert to withdraw it or change it so that it complies with its requirements. In the most serious circumstances, FCA will use its powers under s137S FSMA to ban a promotion or advert. Where it sees repeated non-compliance with its rules, FCA expects these firms to conduct more detailed reviews and provide reports on these findings, particularly on their systems and controls in relation to their financial promotions. FCA may also ask firms to consider whether any customers may have acted on the non-compliant promotions and to take appropriate action to remedy any harm which consumers may have suffered as a result.

For firms acting outside of regulation, FCA has a range of tools to take proportionate enforcement action including; inquiries, including challenging firms and individuals' activities via technical correspondence or publishing consumer alerts, and escalating the most egregious matters to the Unauthorised Business Department's investigation teams for investigation using powers under FSMA, with a view to commencing civil, criminal and/or insolvency proceedings.