PIMFA calls for Financial Conduct Authority to have greater role in protecting public from fraud

3 February 2023

PIMFA calls for Financial Conduct Authority to have greater role in protecting public from fraud

• Greater action from the FCA to block misleading financial promotions in 2022 welcome
• PIMFA continues to call for FCA to have greater role alongside Ofcom to prevent fraud

PIMFA, the trade association for wealth management, investment services and the personal investment and financial advice industry, welcomes the news today (3 February 2023) that the Financial Conduct Authority (FCA) has blocked four times more misleading financial promotions in 2022 than a year earlier.

But we continue to call for the Regulator to have a greater role alongside Ofcom in preventing online fraud on social media platforms and search engines under the provisions set out by the Online Safety Bill.

David Ostojitsch, Director of Government Relations and Policy at PIMFA, commented: “We welcome the news that the Financial Conduct Authority (FCA) has blocked four times more misleading financial promotions in 2022 than compared with the year before. It is vital that the public is protected from online fraud, and the devastating impact it can have on people’s lives. It is also good to see the Regulator working with ‘Big Tech’ firms to reform their advertising policies. But, as the FCA says, more must be done by search engines and social media platforms to protect the public from fraud.

“Provisions contained within the Online Safety Bill to place a duty of care on social media platforms to remove harmful content will help to build on the progress made. However, this does shine a light on some of the shortcomings within the Bill, namely that Ofcom, rather than the FCA, will be charged with defining what is and what is not harmful content. We would encourage all parties to consider how the FCA can take a greater role in identifying harmful content as outlined in the Bill.”

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NOTES TO EDITORS

About PIMFA – the Personal Investment Management & Financial Advice Association

• PIMFA is the trade association for firms that provide wealth management, investment services and the investment and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
• The sector currently looks after £1.65 trillion in private savings and investments and employs over 63,000 people.
• PIMFA represents both full and associate member firms. Full members provide a range of financial solutions including financial advice, portfolio management, as well as investment and execution services. They assist everyone from individuals and families to charities and pension funds, all the way to trusts and companies.  Associate members provide professional services to the PIMFA community.
• PIMFA leads the debate on policy and regulatory recommendations to ensure that the UK remains a global centre of excellence in the wealth management, investment advice and financial planning arena. Our mission is to create an optimal operating environment so that its member firms can focus on delivering the best service to clients, providing responsible stewardship for their long-term savings and investments.
• PIMFA was created in 2017 as the outcome of a merger between the Association of Professional Financial Advisers (APFA) and the Wealth Management Association (WMA) with a history as a trade association since 1991 – read more.
• Further information can be found at pimfa.co.uk

Contact

For further information on this release or other press matters please contact:

Matthew West, PIMFA PR Manager – MatthewW@pimfa.co.uk, +44 (0)20 7382 0376

Sheena Gillett, PIMFA Communications & PR Director – sheenag@pimfa.co.uk, +44 (0)20 7011 9869 / +44 (0)7979 493225