FCA Urges Firms To Report Online Financial Crime

The Financial Conduct Authority (FCA) has intensified its stance on financial crime online, urging regulated firms to report unlawful promotions and illegal content circulating on digital platforms.

Speaking at the PIMFA Compliance Conference 2025, Lucy Castledine, the FCAs director of consumer investments, said the regulator is adapting its approach to combat evolving threats such as deepfake financial scams and unlawful promotions by so‑called “finfluencers.” Castledine stressed that while enforcement remains central, collaboration with firms is now critical to raising compliance standards across the sector.

“We are ready and determined to act against bad actors as always, but with a changing world, we also want to adapt our approach to raise standards together more collaboratively,” Castledine told delegates.

Contents

01

FCA Targets Unlawful Promotions

02

Compliance and Consumer Protection

03

Raising Standards Across the Industry

FCA Targets Unlawful Promotions

The regulators call follows an international week of action in June 2025, where authorities from nine jurisdictions, including the UK, Canada, and Hong Kong, coordinated enforcement against unlawful finfluencers. Castledine noted that despite these efforts, it remains “too easy” for bad actors to promote illegal content online, often evading bans by creating new accounts.

The FCA highlighted that weaknesses in social media platform accountability undermine both consumer protection and the ability of legitimate firms to engage clients online. The watchdog has urged platforms to strengthen controls, particularly as the Online Safety Act UK moves closer to implementation.

Compliance and Consumer Protection

The FCAs directive aligns with its broader mission of consumer investment protection and financial services compliance in the UK. Firms are being asked not only to monitor unlawful promotions but also to report challenges they face when escalating illegal content to technology companies.

This includes identifying deepfake scams of authorised firms, which Castledine warned are becoming increasingly sophisticated. By encouraging firms to share intelligence, the FCA aims to build a stronger reporting framework for illegal financial content, ensuring that enforcement keeps pace with emerging online threats.

Raising Standards Across the Industry

The regulators message underscores a shift from reactive enforcement to proactive collaboration. By calling on firms to report unlawful promotions and online scams, the FCA is positioning itself as both enforcer and partner in safeguarding the financial ecosystem.

For compliance officers and regulated firms, the directive signals heightened expectations: vigilance in spotting unlawful promotions, readiness to act under FCA rules on unlawful promotions, and active participation in shaping a safer digital marketplace.