This data shows the number of actions we have taken to mitigate non-compliance of Financial Conduct Authority (FCA) financial promotions and guidance for 2021 Q4.
In Q4 2021 the FCA reviewed 268 financial promotions from multiple sources:
- 41% from consumers
- 21% from different areas of the FCA
- 19% from UK Regulators
- 13% from firms
- 5% from our proactive monitoring
If the FCA decide that an advert is breaching of their rules, they consider the most appropriate course of action depending on the nature of the breach.
The FCA use a range of tools available, including seeking voluntary or imposing own initiative requirements, asking the firm which has communicated or approved the advert to withdraw it or change it so that it complies with our requirements. In the most serious circumstances, they will seek to use their power to ban the promotion.
They may also ask firms to consider whether any customers may have acted on the non-compliant promotions and to take appropriate action to remedy any harm which consumers may have suffered as a result.
Outcomes, 2021 Q4
The figures represented are for closed cases and do not cover all promotions reviewed in this quarter as some have ongoing supervisory work:
- 1 Own Initiative Application for Imposition of Requirement (OIREQ) was imposed restricting the firm’s ability to communicate of approve financial promotions
- 6 Voluntary Application for Imposition of Requirements (VREQs) were approved, restricting the firm’s ability to communicate or approve financial promotions
- 295 promotions were amended or withdrawn following our intervention with 35 authorised firms
- 77% of these involved website or social media promotions
Figure 1 shows how the cases in 2021 Q4 which resulted in firms withdrawing or amending a promotion are spread across different sectors.
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 we have tackled consumer harm for unauthorised firms in the investment market please read Consumer Investments Data publication.
- 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 is 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.
Related: Financial promotions data 2021
Need some promotional advice? If you want to understand more about how to make sure your marketing materials meet FCA standards, please click here.
The Compliance workload shows no signs of decreasing. An ever-growing list of requirements and regulatory changes makes the compliance role harder than ever.
When you face business or regulatory challenges, we provide solutions that are tailor-made to your needs with a view to releasing your energies to focus on your clients.
LS Consultancy offer a complete solution with a range of cost effective, regulatory compliance and marketing products and solutions including copy advice and copy development which are uniquely suited to supporting firms.
Why Not Download our FREE Brochures! Click here.
Call us today on 020 8087 2377 or email firstname.lastname@example.org.
We welcome individual bloggers / Professional Writers / Freelancers to submit high quality contents. Find out more…