Committee publication · Correspondence · 8 July 2025
Correspondence from the FCA following oral evidence on our inquiry into 'The work of the Financial Conduct Authority', dated 30 June 2025
From: Treasury Committee
Summary
The FCA responds to Treasury Committee questions following its 30 June 2025 oral evidence session. It provides prosecution data (33 commenced over five years, 75 defendants charged), explains its limited powers over finfluencers and social media platforms, outlines its motor finance redress scheme engagement, describes travel insurance rules for those with medical conditions, and details its work on financial exclusion and vulnerability.
Key findings
- FCA initiated 33 prosecutions over five years (June 2020–June 2025) across fraud, insider dealing, breach of general prohibition, and money laundering breaches; 8 prosecutions in 2024 alone involving 26 defendants charged.
- FCA lacks statutory power to compel social media platforms to remove unlawful financial promotions; relies on voluntary removal by platforms by explaining breach of UK law and platform terms.
- FCA engaging broadly with consumer groups, firms, and trade bodies on motor finance redress scheme; will confirm within 6 weeks of Supreme Court judgment whether to introduce formal redress scheme.
- FCA's 2021 travel insurance rules for pre-existing medical conditions achieved estimated 21,000 additional policy sales; 75% of adults seeking cover for serious medical conditions successfully obtained policies in 2024, up from 66% in 2022.
- FCA published March 2025 review of treatment of vulnerable customers; new rules on bullying, harassment, and violence effective 2 July 2025 extending to 37,000 financial services firms beyond banks.
Tone
FactualTopics
financial-services-regulationconsumer-protectionfinancial-crimefinancial-inclusionvulnerable-consumers
Key actors
Dame Meg Hillier, Nikhil Rathi, Financial Conduct Authority, Treasury Committee, HM Treasury, Social media platforms, Domain name registrars
Notable line
“We do not have powers to require social media platforms to remove content.”
Key Quotes
“We have commenced prosecutions relating to a wide range of criminal offences including fraud, insider dealing, breach of the general prohibition, and breaches of the money laundering regulations.”
“We do not have powers to require social media platforms to remove content.”
“We are engaging now because we want to act quickly once the Supreme Court has made its judgment, so we can start to bring greater certainty for affected consumers, firms and investors.”
“… our intervention resulting in an estimated additional 21,000 policy sales. Our most recent Financial Lives Survey also found that in 2024, 75% of adults who looked for a travel insurance policy to cover a serious medical condition successfully managed to take out a policy that covered their condition – up from 66% in”
“Too often when we see problems in the market, there are cultural failings in firms.”
Source · parliament.uk record ↗