The UK's Financial Conduct Authority (FCA) has today published figures summarizing the work it has done to tackle consumer harm in investment markets between 1 April 2022 and 31 March 2023.。

During this period, the FCA:

• blocked one in five new consumer investment companies from entering the market;
• 1,716 consumer warnings were issued against unauthorized companies or individuals;
• £4.9m consumer compensation from unauthorised investment business。

Meanwhile, the FCA's consumer-facing work shows the challenges facing investors。Inquiries about potential scams to the FCA's consumer helpline have increased significantly since 2020, a trend that continues through 2022 / 23 (12% annual increase).。

The ScamSmart website also saw a 12% increase in visits from the previous year.。FCA received significantly more inquiries about potential recovery room scams (21%), impersonation FCA scams (38%) and cryptocurrency scams (17%)。While most consumers contact the FCA helpline about potential scams before investing, 80% of consumers who contact the FCA about potential cryptocurrency scams contact after investing。

Between April 2022 and March 2023, the FCA received more than 25,000 reports of potentially unauthorized business.。Many of these reports are either already known to us or do not fall within the purview of the FCA。Regulators will either take the rest of the report on record for intelligence work or use it as an inquiry for further review.。Enquiries may involve the FCA cracking down on unauthorized business, such as issuing consumer warnings, taking steps to remove websites, and working with companies to resolve violations。The most serious cases become law enforcement investigations into serious misconduct using the FCA's formal powers.。

The FCA currently has 48 enforcement investigations against 212 unauthorized companies and individuals.。

Due to the large number of reports and the complexity of the content, the results of the investigation will vary from year to year, depending on many factors, including the nature of the report, the method used by the Fair Competition Commission to divert cases, and the resources available for this work。

In previous periods, the FCA has received substantial compensation for consumers in relation to unauthorized companies.。£4.9m in 2022 / 23 will return to more typical levels。