In 2022, investors lost a staggering 7% as part of investment crime in the UK..500 million pounds。Scammers often use phones at events and call potential victims to encourage them to trade。

The UK Treasury has released a consultation paper on a proposal to ban the country's fintech sales calls, submitted by the Financial Conduct Authority (FCA) in May.。

Britain wants ban on investment sales calls

In the list of tools whose providers will be prohibited from using the phone for marketing purposes, including payment and banking tools, including electronic money and cryptocurrencies。In addition, the latest document lists insurance products, credits, mortgages and investments in tangible projects.。

The UK government believes that without a ban on sales calls, scammers can continue to move from one financial product to another in order to circumvent existing laws or take advantage of legal loopholes.。The strange phone ban will not completely prohibit financial and cryptocurrency companies from contacting consumers, but will apply to marketing and promotions.。

The UK Treasury added: "This will not affect the company's ability to send regular customer service or management information, such as notifying customers when a product contract is coming to an end.。"

The ban will also not apply if the consumer "expressly and specifically" agrees to receive marketing materials over the phone.。

The document provides a cryptocurrency case study, citing a retail investor who allegedly lost £65,000 through a sales call.。

Five main objectives of the new legislation

The government plans to completely ban sales calls related to financial services and products, and this new rule aims to address the loopholes in the current restrictions by ensuring the following:

Consumers will realize that legitimate companies will not actively market financial services or products to them。We encourage consumers to end and report any financial pitch calls they receive as scams.。Legitimate businesses will have clear rules to follow when promoting financial products。Authorities can take legal action against UK companies that insist on advertising financial products and services to consumers。Fraudsters cannot circumvent the ban simply by changing the financial products they market.。

FCA takes several measures to protect investors

There is no doubt that the Financial Conduct Authority (FCA), one of Europe's most proactive financial market regulators, updates warning lists almost daily, adding unlicensed entities and introducing new legislation.。

One example is the "travel rules" that will take effect on September 1.。Under the rules, cryptocurrency companies must provide information about transfers and have until Aug. 25 to comment on the new guidelines.。The travel rules emerged to meet the growing need for transparency and accountability in the cryptocurrency trading space.。

Earlier, the FCA released financial promotions data for the second quarter.。According to the data generated from April 1 to June 30, the interventions undertaken by the FCA resulted in 1,507 promotions being changed or withdrawn by regulated entities.。In addition, the FCA issued 400 warnings to unauthorized companies and individuals, 11% of which were related to cloning fraud.。

A report in July said the FCA had stepped up efforts to stop non-compliant financial promotions.。Regulators have also tightened rules for advertising financial services on social media platforms such as TikTok and Instagram.。