FCA issues 1,800 potential scam warnings

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FCA issues 1,800 potential scam warnings
Nikhil Rathi, chief executive of the Financial Conduct Authority (Chris J. Ratcliffe/Bloomberg)
BySally Hickey

The Financial Conduct Authority has issued 1,800 potential scam warnings so far as part of its strategy to improve outcomes for consumers.

The warnings, which total 400 more than the previous year, came alongside 201 cancelled authorisations for firms failing to meet minimum standards, according to the FCA.

In a statement this week (December 21), the regulator said its action has seen £30mn returned to people from businesses operating without authorisation.

The FCA has also removed or amended 8,000 potentially misleading adverts in 2022, 14 times more than the previous year.

Chief executive of the FCA, Nikhil Rathi said it has been a difficult year for many people who have been struggling with the cost of living. 

“So it is all the more important that financial companies meet our standards and treat their customers fairly, particularly those who are facing financial difficulties,” he said.

“As well as protecting consumers and supporting the vulnerable, we have been dealing with unprecedented market events and reviewing our rules to ensure our regulatory regime is fit for the future. 

“We are working on reforms to the way companies are listed in the UK, which will support growth and competitiveness and continue to support innovative and fast-growing companies.”

Rathi highlighted the FCA’s three-year strategy, announced in April, that plans to improve outcomes for consumers and markets.

The strategy focuses on three areas: reducing and preventing serious harm, setting and testing higher standards, and promoting competition and positive change. 

The regulator is to recruit 80 new employees to crack down on problem firms and police the market as part of the strategy.

It will also hold itself accountable against published outcomes and performance metrics for the first time.