FCA action against misleading financial adverts nearly doubles

The FCA has revealed that nearly 20,000 financial promotions were withdrawn or amended in 2024.

Data published by the regulator on 7 February 2025 showed that action was taken against 19,766 promotions last year, a 97.5% increase compared to 2023.

Almost 10,000 were from claims management companies, with the FCA removing 9,197 such adverts.

Many of these promotions were related to housing disrepair and motor finance claims targeted at vulnerable consumers, the watchdog said.

In addition to claims management company promotions, the regulator also said it had concerns about those regarding cryptoasset and debt propositions.

Lucy Castledine, director of consumer investments at the FCA, said: “Over the past year, we have seen a growing number of misleading and illegal financial promotions.

“We have stepped up our efforts in response to make sure that financial promotions are clear, fair and accurate.”

Tighter rules

This comes after the FCA strengthened rules around financial promotions, including the introduction of the section 21 gateway.

This requires firms to obtain FCA permission before approving promotions for unauthorised persons.

As part of its clamp down on misleading adverts, the regulator is urging social media platforms to do more to proactively identify and prevent illegal financial promotions.

Castledine said: “We expect firms to take the necessary steps to meet standards and will continue to work with other bodies, including social media platforms, to prevent illegal promotions being pushed at consumers.”