Over 100 financial promotions were in breach of regulatory rules in the first quarter of this year following a review by the Financial Conduct Authority (FCA).
Data from the regulator, published yesterday (April 6), showed 38 cases resulted in 105 promotions being amended or withdrawn by authorised firms in Q1 2021 due to non-compliance with its rules.
The FCA said it had reviewed 441 financial promotions in the first quarter of this year.
The majority of promotions that were amended or withdrawn related to retail lending (47 per cent), followed by retail investments (26 per cent).
The FCA started publishing financial promotions data quarterly this year after realising a "need for greater transparency over the non-compliant financial promotions outcomes".
|Category||General Insurance & Protection||Pensions & Retirement Income||Retail Investments*||Retail Banking|
|Count of case number||3%||5%||26%||18%||47%|
|Figures rounded to the nearest percentage. *The above cases do not relate to unauthorised firms that have not had their promotions approved. Source: FCA|
The FCA said three-quarters of promotions that were amended or withdrawn related to either website or social media promotions.
Promotions reviewed by the watchdog included those identified through its proactive work and complaints it received, with the majority of reports (45 per cent) coming from consumers.
Under the Financial Services and Markets Act, the FCA has the legal power to ban a financial promotion or advert that is unclear, unfair or misleading.
From January the regulator permanently banned the mass marketing of speculative mini-bonds to retail consumers.
The move came after a temporary ban following concerns that speculative mini-bonds were being promoted to retail investors who neither understood the risks involved, nor could afford the potential financial losses.
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