THE IMPORTANCE OF TRUTHFUL ADVERTISING
MARSH FINANCE CONSIDER THE FCA’S STANCE
MARSH FINANCE
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In the ever-evolving world of car finance, staying abreast of regulatory changes is not just advisable; it’s imperative.
The FCA recently underscored this necessity by publishing an update on its efforts to curb misleading adverts and financial promotions.
In 2023, the FCA’s diligent oversight led to over 10,000 financial adverts and promotions being withdrawn or amended — a significant increase of 17% from the previous year.
KEY REGULATORY UPDATES AND THEIR IMPLICATIONS
The FCA’s increased issuance of alerts, rising to 2,285 in 2023 from 1,800 the previous year, clearly signals its commitment to protecting consumers from scams. The recent focus on illegal crypto-asset promotions underscores the expansion of the FCA’s concern, reflecting the broader changes in the financial landscape.
Of particular note is the FCA’s concern regarding the rise of ‘finfluencers’—influencers promoting financial products on social media. This trend highlights the evolving financial promotion channels and the need for firms to ensure all promotions are clear, fair, and not misleading.
From 7 February 2024, the requirement for authorised firms to obtain permission from the FCA before approving promotions for unregulated persons marks a significant shift. It emphasises the need for expertise and competence in the approval process, ensuring that consumers have the information to make informed financial decisions.
THE CONSUMER DUTY AND ITS ROLE
The Consumer Duty is a cornerstone in the FCA’s efforts to ensure that firms are genuinely acting in the best interests of consumers. It mandates that firms provide clear and comprehensive information and demonstrate that their actions help consumers make effective decisions.
THE FCA’S STANCE ON MISLEADING ADS AND PROMOTIONS
Lucy Castledine, Director of Consumer Investments at the FCA: “People need clear, fair and accurate information to base their financial decisions on. We will continue to intervene and take action when we identify firms not meeting our minimum standards.”
As senior stakeholders at car dealerships, it’s crucial to understand that the landscape of car finance is not just changing; it is becoming more demanding regarding transparency and consumer protection.
MARSH FINANCE: YOUR PARTNERS IN COMPLIANCE
With over fifty years of experience in the car finance industry, we understand the challenges and opportunities presented by this evolving regulatory landscape. Our unique position as a family-owned lender allows us to offer more than just financial solutions. Our free compliance and operational consultancy service is specifically designed to support our partners in this area. We provide expert guidance to ensure that financial promotions are compliant with the latest FCA regulations.
