The changes are intended to clarify and update how firms should conduct their online promotion of financial services and products.

Lucy Castledine, FCA’s director of consumer investments, said: “We’ve seen a growing number of ads falling short of the guidance we have in place to stop consumer harm.

“We want people to stay on the right side of our rules, so we’re updating our guidance to clarify what we expect of firms when marketing financial products online.

“And for those touting products illegally, we will be taking action against you.”

Recognising the escalating influence of financial influencers or ‘finfluencers’ and the risks they pose, the FCA has increased its oversight. Collaborating with the Advertising Standards Authority, the FCA seeks to inform consumers and influencers about potential risks tied to financial product promotions. Efforts include providing infographics, hosting roundtable discussions, and conducting live events.

The FCA has also collaborated with several big tech firms to alter advertising policies, permitting only financial promotions authorised by FCA-approved firms. This is part of the regulator’s ongoing initiative to ensure increased consumer protection.

The consultation regarding these updates trails the introduction of new advertising rules for cryptocurrency firms, to be effective from 8 October 8 2023. Such firms will be prohibited from offering investment incentives such as “refer-a-friend” bonuses.

They will also need to provide clear risk warnings and a 24-hour ‘cooling-off’ period for first-time investors to reconsider their investment choices. This approach mirrors that used for other high-risk investments.