End of Cold Calling In the UK: FCA Considers a Complete Ban for Finance and Crypto
- Cold calling is one of the more common methods that fraudsters use in the UK.
- The FCA and Treasury want to ban Fintech companies from using this form of marketing.
In 2022, as part of investment crimes in the United Kingdom, investors lost a staggering £750 million. Scammers often used phones in their activities and cold-called their potential victims, encouraging them to trade. The UK Treasury has just published a consultation paper on the proposal to ban cold calling by fintech in the country, which was presented by the Financial Conduct Authority (FCA) in May.
The United Kingdom Wants to Block Investment Cold Calling
On the list of instruments whose providers are to be subject to a ban on using telephones for marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term purposes, we find payment and banking instruments, including electronic money and cryptocurrencies. In addition, the latest document lists insurance products, credit, mortgages, and investments in tangible items.
The British government argues that without a ban on cold calling, scammers can continue to move from one financial product to another to circumvent current laws or exploit legal loopholes. The cold calling ban will not completely prohibit finance and crypto companies from contacting consumers; it will apply to marketing and promotional activities.
"It will also not affect the ability of firms to send routine customer service or administrative messages, for example, informing customers when a product contract is coming to an end," the HM Treasury added.
If a consumer has expressed "clear and specific" consent to receive marketing materials by phone, the ban will also not apply.
The document presents a cryptocurrency case study, showing an example of a retail investor who allegedly lost £65,000 through cold calling.
Five Main Goals of New Legislation
The government plans to implement a comprehensive ban on cold calling related to financial services and products. This new regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term aims to address the existing loopholes in the current restrictions by ensuring the following:
- Consumers will be aware that legitimate firms will not approach them with unsolicited marketing for financial services or products.
- Consumers will be encouraged to end and report any financial cold calls they receive as scams.
- Legitimate businesses will have well-defined rules to adhere to when promoting financial products.
- Authorities can take legal action against UK firms that persist in cold-calling consumers to advertise financial products and services.
- Fraudsters cannot circumvent the ban by merely altering the financial product they are promoting.
FCA Takes Numerous Measures to Protect Investors
Undoubtedly, the Financial Conduct Authority (FCA) is one of Europe's most proactive financial market regulators. It updates its warning list almost every day, adding unlicensed entities and introducing new legislation.
One example is the 'Travel Rule’, which will come into effect on 1 September. Under this rule, cryptocurrency companies must provide information about transfers. They have until 25 August to provide input on the new guidance. The Travel Rule emerged in response to the growing need for transparency and accountability within the domain of cryptocurrency transactions.
Earlier this month, the FCA published data on financial promotions for the second quarter. According to data generated from 1 April to 30 June, the number of interventions taken by the FCA resulted in 1,507 promotions being altered or withdrawn by regulated entities. Additionally, the FCA issued 400 warnings to unauthorized firms and individuals, of which 11% were related to clone frauds.
In July, Finance Magnates reported that the FCA had intensified its effort to prevent financial promotions that do not comply with regulations. Furthermore, the regulator tightened the rules for advertising financial services on social media platforms, such as TikTok and Instagram.
In 2022, as part of investment crimes in the United Kingdom, investors lost a staggering £750 million. Scammers often used phones in their activities and cold-called their potential victims, encouraging them to trade. The UK Treasury has just published a consultation paper on the proposal to ban cold calling by fintech in the country, which was presented by the Financial Conduct Authority (FCA) in May.
The United Kingdom Wants to Block Investment Cold Calling
On the list of instruments whose providers are to be subject to a ban on using telephones for marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term purposes, we find payment and banking instruments, including electronic money and cryptocurrencies. In addition, the latest document lists insurance products, credit, mortgages, and investments in tangible items.
The British government argues that without a ban on cold calling, scammers can continue to move from one financial product to another to circumvent current laws or exploit legal loopholes. The cold calling ban will not completely prohibit finance and crypto companies from contacting consumers; it will apply to marketing and promotional activities.
"It will also not affect the ability of firms to send routine customer service or administrative messages, for example, informing customers when a product contract is coming to an end," the HM Treasury added.
If a consumer has expressed "clear and specific" consent to receive marketing materials by phone, the ban will also not apply.
The document presents a cryptocurrency case study, showing an example of a retail investor who allegedly lost £65,000 through cold calling.
Five Main Goals of New Legislation
The government plans to implement a comprehensive ban on cold calling related to financial services and products. This new regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term aims to address the existing loopholes in the current restrictions by ensuring the following:
- Consumers will be aware that legitimate firms will not approach them with unsolicited marketing for financial services or products.
- Consumers will be encouraged to end and report any financial cold calls they receive as scams.
- Legitimate businesses will have well-defined rules to adhere to when promoting financial products.
- Authorities can take legal action against UK firms that persist in cold-calling consumers to advertise financial products and services.
- Fraudsters cannot circumvent the ban by merely altering the financial product they are promoting.
FCA Takes Numerous Measures to Protect Investors
Undoubtedly, the Financial Conduct Authority (FCA) is one of Europe's most proactive financial market regulators. It updates its warning list almost every day, adding unlicensed entities and introducing new legislation.
One example is the 'Travel Rule’, which will come into effect on 1 September. Under this rule, cryptocurrency companies must provide information about transfers. They have until 25 August to provide input on the new guidance. The Travel Rule emerged in response to the growing need for transparency and accountability within the domain of cryptocurrency transactions.
Earlier this month, the FCA published data on financial promotions for the second quarter. According to data generated from 1 April to 30 June, the number of interventions taken by the FCA resulted in 1,507 promotions being altered or withdrawn by regulated entities. Additionally, the FCA issued 400 warnings to unauthorized firms and individuals, of which 11% were related to clone frauds.
In July, Finance Magnates reported that the FCA had intensified its effort to prevent financial promotions that do not comply with regulations. Furthermore, the regulator tightened the rules for advertising financial services on social media platforms, such as TikTok and Instagram.