The Financial Conduct Authority (FCA) has ordered authorized firms to amend or withdraw 2,211 promotional activities in the first quarter of 2024.

The retail investment and retail lending sectors saw the highest number of modifications/withdrawals, accounting for 85% of the FCA's interventions with authorized firms. The most common violations included claims management companies, credit brokerage firms, and providers of Contracts for Difference (CFDs).

On January 8, 2024, agreement to end amendments to the Direct Offer Financial Promotions (DOFP or "backend") rules introduced under Policy Statement 23/6 was reached. The FCA is conducting a review to test compliance levels with these rules and will take action upon discovering violations, utilizing its regulatory tools and enforcement actions where necessary.

On February 7, 2024, the Financial Promotions Approvals Gateway came into effect, requiring companies wishing to approve financial promotions on behalf of firms outside their group that are not authorized to apply for approval permissions from the FCA. Companies that submitted applications before February 7 could benefit from transitional arrangements, allowing them to continue approving promotions while their applications are considered. Reporting requirements have also come into effect for all companies with approval permissions or benefiting from transitional arrangements from February 7 onwards.

The FCA has actively reviewed marketing and promotional activities of claims management companies handling home repair claims. This led to 83 modifications/withdrawals after contact with 7 authorized firms, and additionally, the FCA is focusing on the work of unauthorized firms, striving to eliminate illegal financial promotions.

In the first quarter of 2024, the FCA received 5,722 reports concerning potential unauthorized activities.

Regulatory agencies issued 597 alerts concerning unauthorized firms and individuals. Among these, 11% involved clone scams, where fraudsters use details such as the names, addresses, and "Firm Reference Numbers" (FRN) of authorized firms and individuals, implying authenticity. Many of these involved violations related to restrictions on online financial promotions.