FCA Takes Down Over 10,000 Adverts And Cancels 1,266 Financial Firms In 2023
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The Financial Conduct Authority (FCA) is heightening enforcement actions against unauthorized firms in the UK. It is also cracking down on false financial promotions by financial companies in the country.
According to the FCA, it imposed record-high financial penalties during the 2023 fiscal year. The heightened regulatory scrutiny also shows that the FCA is taking a tough stance to protect consumers and maintain market integrity.
FCA Cracks Down On Unregistered Firms and Misleading Promotions
In 2023 alone, the FCA has taken down more than 10,000 adverts seen as potentially misleading. It has also issued 2,243 warnings around unauthorized firms and individuals.
The FCA’s actions seek to protect consumers from online financial scams and misinformation. Between January and October 2023, the FCA cracked down on 1,266 financial firms that operated without authorization.
The FCA’s actions seek to protect consumers from misinformation and financial scams often propagated online. The number of canceled financial firms in 2023 is double compared to 2022.
Firms that fail to meet the authorization standards are barred from offering services within the regulated financial service industry. The FCA also engaged in enforcement cases and imposed a total of £52,802,900 fine this year after investigations.
The fines seek to penalize misconduct while sending a message to the industry about the effects of failing to abide by the set regulatory requirements.
FCA’s Achievements And Strategy
The heightened enforcement action by the FCA is part of the regulator’s strategy. The update has outlined multiple key achievements over the past year and some ongoing priorities.
The main achievement by the FCA in 2023 has been introducing Consumer Duty, which, according to the agency’s Chief executive, is “game-changing.” Consumer Duty came into effect on July 31, 2023, and it has set high standards for consumer protection in the financial service industry.
The other areas the FCA has paid attention to this year include insurance pricing and debt advice. A review of retail banking shows good practices for identifying potential harm and remediate. The fines imposed by the FCA for anti-money laundering failures surpassed £17 million.
Regarding competition, the FCA is working on a framework that will promote competitiveness and the long-term growth of financial firms. Its other ongoing priorities include addressing risks from online financial spaces, improving access to cash, promoting inclusion and diversity, and supporting the use of AI.
