In July 2021, the FCA issued data showing the number of financial promotions for Q2 2021 that had been amended or withdrawn due to non-compliance with its rules.
The FCA undertakes many reviews of firms’ financial promotions, which are identified through multiple sources including consumer and firm referrals. Where it concludes that a promotion is in breach of the Conduct of Business (COBS) rules, it will ask the firm which has communicated or approved it to withdraw or change it. 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. This data includes statistics about how it reviews and acts on certain non-compliant financial promotions.
In Q2 2021, it reviewed 439 financial promotions, which includes promotions identified through complaints received and the proactive work performed to ensure promotions meet the requirements of the COBS rules, including that they are fair, clear and not misleading. 48% of the reports were received from consumers, 28% from internal areas of the FCA and 13% from other UK regulators. 6% of the reports related to proactive monitoring, 3% were received from firms and 2% were received from other sources.
During this time, 34 cases resulted in 84 promotions being amended or withdrawn through interaction with authorised firms. These cases were spread across a number of sectors, with 41% relating to retail lending and 38% to retail investments. 88% of the amend/withdraw outcomes related to website or social media promotions1
1 These cases do not relate to unauthorised firms that have not had their promotions approved.
If you’d like to know more about how we can help you with your financial promotion or social media arrangements, or with 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.