What has happened?
Quarterly data released by the FCA in April 2021 shows the number of financial promotions amended or withdrawn due to non-compliance with the FCA’s rules.
What do you need to do?
The FCA undertakes many reviews of firms’ financial promotions, which are identified through multiple sources including consumer and firm referrals and it looks at every financial advert reported to it. Where it concludes that an advert is in breach of its rules, it will ask the firm that communicated or approved it to withdraw the advert or to change it so that it complies with the requirements. It may also ask firms to consider whether any customers may have acted on the basis of non-compliant promotions and to take appropriate action to remedy any harm which consumers may have suffered as a result.
From 2021 the FCA has started to publish this data quarterly. It includes statistics about how the FCA reviews and acts on certain non-compliant financial promotions. In Q1 of 2021, the FCA reviewed 441 financial promotions, which includes promotions identified through complaints received and the work performed to ensure promotions meet the requirements of the rules, including that they are fair, clear and not misleading.
45% of reports came from consumers, 27% came from internal areas of the FCA, 15% came from UK regulators and 13% came from other sources. During this time, 38 cases reviewed resulted in 105 promotions being amended or withdrawn through interaction with authorised firms.
The graph below shows how the cases in Q1 2021 which resulted in a promotion being amended or withdrawn are spread across a number of sectors.
75% of the amend or withdraw outcomes related to either website or social media promotions.
How can we help you?
If you’d like to know more about how we can help you with any aspect of your financial promotions arrangements, or any other regulatory compliance issues, our expert team is here to help.
Contact us today on 0207 436 0630 or email info@thistleinitiatives.co.uk.