Misleading financial promotions

Mar 25th '22

Find out the difference between clear and misleading financial advertising, and what to do when you think a financial advert is unclear.


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Financial promotions or adverts are likely to be the most regular contact consumers have with firms that offer financial services and products.


These promotions can be across any medium, such as websites, social media posts or mobile apps, and can provide valuable insight into a firm’s conduct.


The Financial Conduct Authority (FCA) regulate advertising for most financial services. This includes products such as:


  • loans (including payday loans, guarantor loans, car finance and peer to peer)
  • investments (including bonds, stocks and shares, contract for differences, collective investment schemes, loan and equity based crowdfunding)
  • cash savings and bank accounts
  • insurance (including home, motor and travel)
  • pensions
  • mortgages (including equity release)
  • life assurance
  • payment services and e-money (excluding cash-to-cash ‘bureaux de change’ activities)
  • claims management (including personal injury, criminal injury and employment related)


Please contact the Advertising Standards Authority (ASA) if you have an issue that doesn’t relate to a financial product.


You can complain to ASA about the more general parts of an advert or promotion, such as its taste and decency, or in relation to its social responsibility.


For more details about the split of responsibility regarding financial promotions, please view the MoU with the ASA.


Spot a misleading financial promotion

Financial promotions can be unfair, unclear or misleading for many reasons.


Here are some questions to help you spot and avoid the misleading ones.


  • What are the risks to my money and are they clear?
  • How long do I have to commit for?
  • Does the promotion make it clear who you are dealing with and who will be providing the product or service?
  • Are there any penalties if I want to move my money?
  • Does the promotion create an unrealistic expectation of the product?
  • Is there important information that only appears in the small print?
  • Is the promotion balanced (are both the benefits and negatives explained)?
  • Is it explained to you clearly what you need to pay or how much you will end up paying?
  • Does the promotion suggest the FCA has approved or endorsed the product? We do not approve financial promotions and the firms statement regarding their regulation should be factual only (for example, ‘Authorised and Regulated by the FCA’).
  • Does the promotion suggest the product is ‘secured’, ‘guaranteed’ or ‘protected’ in any way? If so, does it make it clear how this security/guarantee/protection is provided?
  • Is the promotion issued by a company that is not authorised and regulated by the FCA? If so, does it make it clear which regulated firm has approved the promotion? Does it make it clear that the investment does not benefit from regulatory protections such as access to the Financial Services Compensation Scheme (FSCS)?


Report a misleading financial promotion

If you see a financial promotion that you feel is unfair, unclear or misleading, please tell the FCA by completing this online form.


The form will ask you for details about the financial promotion, and provides options to contact the financial regulator by post or email if you prefer.


When the FCA find that a financial promotion is misleading they can:


  • ask the firm to change or remove the advert
  • ask the firm to write to customers who may have been misled
  • warn or fine the firm
  • ban the promotion


Who else to contact

Please be aware that we cannot resolve individual disputes you have with a firm.



Source: FCA


With several do’s and don’ts to consider when putting a financial promotion together, many firms tend to shy away from them to avoid any repercussions. But sometimes word of mouth can’t solely be relied upon to market your business. This is where LS Consultancy can help. The first step is to create the financial promotion that you would like to publish then send it over for us to review it to ensure it’s compliant.


Need some promotional advice? If you want to understand more about how to make sure your marketing materials meet FCA standards, please click here.


Is your website is falling foul of financial promotions rules?


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