The FCA's clampdown on misleading promotions

Third-quarter interventions reach record high

The Financial Conduct Authority (FCA) has taken enforcement action against a record number of firms for breaching financial promotion rules in the second quarter of 2024.

The regulator intervened in 3,273 promotions during the period, up from 2,211 in the first quarter and 1,004 in the fourth quarter of 2023. The surge in enforcement activity follows a series of high-profile cases of misleading promotions in the financial services sector.

The FCA has been particularly concerned about the use of unclear or exaggerated language in promotions, as well as the failure to disclose important information. This can lead to consumers making poor investment decisions and losing money.