(Bloomberg) — The UK’s markets watchdog opened hundreds more supervisory cases involving investment scams and high-risk investments in the year to March, part of a new initiative designed to better protect consumers after the regulator drew criticism for its failure to prevent various investment scandals.
The Financial Conduct Authority opened 2,724 cases, 59% more than a year earlier, according to its latest consumer investments strategy update. A change in how its records such cases means the year-on-year comparison isn’t exact but it said the increase it due to a clampdown on harmful online promotions and more cases being referred to its cryptoasset supervision team.
The FCA also said it doubled the number of restrictions it placed on consumer investment firms, stopping them from promoting and selling certain products or offering advice deemed potentially harmful to consumers. It imposed 22 such orders in the year to March, compared to 9 the year before, the report said. It also stopped 17 firms and seven individuals attempting to obtain a new FCA authorization.
The figures offer an early indication of the way the regulator is trying to become increasingly assertive and how it is turning to data analysis to enforce its concept of the duty of care in a world awash with online promotions.
“We want to see a consumer investment market where consumers can invest with confidence, understanding the level of risk they are taking,” said Sarah Pritchard, executive…
