Firms can fall foul of the regulator by failing to include sufficient risk warnings, having unsubstantiated claims or using confusing wording.
The FCA withdrew or amended 328 products annually to June 30, up from 204 in 2012/13.
The regulatory consultancy Bovill said the FCA has an increasingly ‘interventionist’ approach to the marketing of financial products, while firms are currently getting to grips with the regulator’s guidance in areas such as social media.
Mark Spiers, head of wealth management at Bovill, said: ‘This sharp jump shows that the FCA is scrutinising ever more intensively how the financial promotion rules are being applied and highlights the growing challenges firms face in getting it right.
‘While it’s vital that the FCA is vigilant in protecting retail investors in particular, staying within the financial promotions rules is a very tricky balancing act for firms, as it is fairly easy to overstep the mark.
‘As the regulator becomes increasingly proactive – much more so than its predecessor the FSA – and issues a spate of recent changes and clarifications to its guidance, many firms are scrambling to keep up.
‘Firms can’t afford to make mistakes. Not only will the FCA expect decisive remedial action from any firms who get it wrong, they could also face the prospect of getting a public ticking off from the regulator, which could be hugely damaging to their reputation.’
