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FCA financial promotions quarterly data 2023 - Q2

Aug 9, 2023 2:04:40 PM

What has happened?

In August 2023, the FCA provided a summary of data generated between 1 April 2023 and 30 June 2023 from its actions against firms breaching the financial promotion rules.

What are the key points of the data summary for financial promotions issuers?

  • FCA interventions in 2023 Q2 resulted in 1,507 promotions being amended or withdrawn by 54 authorised firms. Retail investments and retail lending are the sectors with the highest amend/withdraw outcomes, totalling 70% of interventions with authorised firms. Some other common breaches involved debt advice firms and peer-to-peer lending platform firms.
  • On 31 July 2023, the Consumer Duty came into force for new and existing products and services open for sale or renewal. The Duty is a significant shift in expectations, setting higher standards of consumer protection.
  • On 6 April 2023, the FCA released an infographic1 in conjunction with the Advertising Standards Authority, to educate finfluencers about their obligations when seeking to promote financial services and products. 45,000 people viewed the posts and there were 1,300 engagements. 

1 https://www.asa.org.uk/static/a842c33f-8cd5-470e-b5413c3b716ef2de/finfluencer-infographic.png

Cryptoasset firms marketing to UK customers – FCA Policy Statement

Firms must, among other requirements, display clear risk warnings when promoting cryptoassets, ensure consumers have appropriate knowledge and experience to invest, implement a cooling off period before allowing first-time investment, and ensure their promotions are clear, fair and not misleading.

The FCA is investigating how firms have implemented its new rules for high-risk investments, including their approach to appropriateness tests and client categorisation. Engagement with firms is ongoing, and the FCA has undertaken to provide further updates and share its findings on completion of the reviews.

Review of the marketing and financial promotions compliance of funeral plan providers

The FCA started regulating the funeral plans market on 29 July 2022. An initial review last year identified some moderate concerns that have since been addressed. This year, the FCA has reviewed the remainder of the funeral plan firm population, which resulted in contact being made with 17 of the remaining 21 firms. Some common themes are firms using their regulatory status in a promotional way, the use of promotional language on safeguarding and not making it clear what is included and what is not included within the funeral plan. This work resulted in over 450 promotions being amended or withdrawn.

How can we help you with financial promotions compliance?

Thistle Initiatives has supported firms for over 10 years as a trusted compliance and regulatory advisor. In addition to assisting you as-and-when, its team of specialists can serve as your right hand in meeting and complying with regulations. We understand the importance of staying up-to-date and compliant and are dedicated to providing the guidance and support needed to do so.

Are you looking for help with your financial promotions compliance or more general regulatory questions?Contact our specialist team now to schedule a free consultation. Get in touch with us by calling 0207 436 0630 or send an email to info@thistleinitiatives.co.uk.