Financial promotions quarterly data


INSIGHT
Published
Apr 6th '21
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This data shows the number of financial promotions that have been amended or withdrawn due to non-compliance with Financial Conduct Authority (FCA) rules.

 

The FCA undertake many reviews of firms’ financial promotions, which are identified through multiple sources including both consumer and firm referrals. They look at every financial advert reported to them. Where they conclude that an advert is in breach of our rules, they ask the firm which has communicated or approved it to withdraw the advert, or change it so that it complies with financial promotions requirements. The FCA 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.

 

The FCA realise the need for greater transparency over the non-compliant financial promotions outcomes, so from 2021 they’ve started to publish this data quarterly.

 

This data includes statistics about how they review and act on certain non-compliant financial promotions.

 

In Q1 of 2021 we reviewed 441 financial promotions, which includes promotions identified through both complaints the FCA have received and the proactive work they perform to ensure promotions meet rule requirements, including that they are fair, clear and not misleading.

 

  • 45% of reports came from consumers
  • 27% of reports came from internal areas of the FCA
  • 15% of reports came from UK regulators
  • 13% of reports came from other sources

 

During this time 38 cases resulted in 105 promotions being amended or withdrawn through FCA interaction with authorised firms.

 

Figure 1 shows how the cases in Q1 2021 which have resulted in a promotion being amended/withdrawn are spread across a number of sectors.

 

Figure 1: Financial promotions Q1 2021 data.

 

Image: FCA data

 

Figures rounded to the nearest percentage.

 

*The above cases do not relate to unauthorised firms that have not had their promotions approved.  For details relating to how the FCA has tackled consumer harm for unauthorised firms in the investment market please review the Consumer Investments Data publication.

 

75% of the amend/withdraw outcomes related to either website or social media promotions.

 

Note: FCA casework with firms will usually involve confidential information for the purposes of section 348 of the Financial Services and Markets Act 2000. The FCA are therefore unlikely to be able to provide further information about particular cases. Find out more about the information they can share.

 

Report a misleading financial advert

Report a financial advert or promotion that you think is misleading, unfair or unclear.

 

Source: FCA

 

Related: FCA financial promotion case studies

 

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