Firms are using AI to drive efficiency, support decision-making and deliver better outcomes for consumers and markets. We want to support that innovation. But it must be safe, responsible and well governed.We have been clear that we are not going to introduce new regulations for AI. Instead, we’ll rely on existing frameworks, including the Consumer Duty, the Senior Managers and Certification Regime (SM&CR), and our expectations on governance and controls.We recognise that AI can raise new and practical questions, and we want to help industry to tackle these. So, we are speaking to firms on topics such as:How firms oversee and govern AI.How they test models and monitor outcomes.How they ensure fair treatment for customers, including those with features of vulnerability.How they explain AI-driven decisions.We will share good and poor practice later this year on questions like these to better support firms in adopting AI safely and responsibly and as we see AI technology develop.As we see AI technology continue to develop, we’ll share what we learn.

Consumers are being warned to be wary of misleading car finance 'money tips' adverts issued by claims management companies (CMCs) and law firms on social media. As part of the joint regulatory taskforce, the FCA has identified a growing number of adverts that appear to offer independent advice from an individual but are in fact paid promotions from CMCs and law firms encouraging people to sign up for motor finance claims.Consumers should be aware that some adverts:Pose as impartial advice from individuals, without clearly saying they are promoting a business.Misuse logos, imagery or references linked to well-known companies, media outlets or public bodies or figures to falsely suggest their approval or endorsement. The FCA recently banned adverts from a CMC which used edited, unauthorised clips of Martin Lewis, Money Savings Expert, to make misleading claims about average car finance compensation. Fail to make clear that you can make a claim yourself for free.Following action from the FCA, one firm has already agreed to take down all of their adverts. The FCA, working with its regulatory partners, will take further action to stop consumers being duped into signing up without the right information. Firms must remove any content that misleads consumers and prevents them from making informed decisions. Firms are expected to take action to ensure any consumers that were misled into signing up are put back into their original position. This may include unwinding contracts for free.Alison Walters, director of consumer finance at the FCA, said: 'Accessing compensation is free, and people don't need to use a claims management or law firm to get what they’re owed. If they choose to, it should be a genuine and well-informed choice, not one made because of a misleading advert.'Advice for consumersConsumers do not need to use a CMC or a law firm to make a car finance claim – information on how to make a complaint for free is available on the FCA website.If you choose to use a CMC or law firm, you may have to pay a fee of over 30% of any compensation, and you should not sign up to more than one firm, or you may have to pay multiple fees.Poor practice by claims firmsThe FCA and its regulatory partners have serious concerns about how some CMCs and law firms have been operating. Reports of poor practice include:Unwanted texts or emails, driving 6 million complaints to the Information Commissioner’s Office this year. Consumers being misled by adverts or signed up without their knowledge or consent — for example, by clicking a 'free compensation checker' on social media. Firms making it difficult for consumers to exit agreements where they have been misled into signing up, aggressively pursuing fees, charging unfair exit fees, or making exaggerated claims for work already done. Firms failing to keep clients updated, explain their options fully, or make clear that consumers can take a complaint to the relevant Ombudsman for free.Complaining to a CMC or law firmIf you have concerns about how you were signed up, whether you were properly informed and gave consent, how your data was used, the handling of your case, or the fee charged to exit your contract, you should complain directly to the firm. The FCA has created a template letter (DOC) to help.If you signed up and now wish to cancel, you may be asked to pay a fee. That fee must be reasonable and reflect the work done. Most car finance claims are still at an early stage, so any fees you’re asked to pay should match the work carried out so far. Given the widespread poor practice we have seen, you should check very carefully the basis for any fee before paying it.If you think you have been signed up without consent, misled or treated unfairly, you can ask to exit your contract for free and may also be owed compensation by the CMC or law firm. Charges may not be appropriate if CMCs and law firms have not complied with the law in how they have handled your case and your data.If you're unhappy with the firm's response, you can take your complaint to the relevant independent Ombudsman. If the firm is regulated by the FCA, go to the Claims Management Ombudsman. If it is regulated by the Solicitors Regulation Authority, go to the Legal Ombudsman. They can consider your case for free, including whether the fee you are being charged is reasonable and whether you are owed compensation for unfair treatment. We encourage consumers to use these services to ensure they are treated fairly.Notes to editorsA joint taskforce was launched in March to tackle the poor handling of motor finance claims. The FCA also launched a review of the claims management market to look at the root causes of poor practices across the market.As a result of the FCA’s work, over 1,000 misleading adverts have been removed or amended since January 2024, more than 28,000 consumers have been able to exit contracts free of charge, and 3 CMCs reduced their unreasonable fees protecting over 500,000 consumers. 10 CMCs have agreed to make changes to their processes through voluntary requirements (VREQs):4 have agreed not to onboard new clients 2 firms agreed to terms relating to exit fees and 4 firms agreed to terms relating to their advertising The FCA has confirmed 2 enforcement investigations into The Claims Protection Agency Limited and Consultation Claims Limited.

On 4 June 2026, the FCA required Euro Exchange Securities UK Limited (EES) to cease carrying out any regulated electronic money or payment services and, on the FCA’s application, interim managers were appointed by the Court over EES. Serious concerns around the way EES operated its business indicated there were significant risks of financial crime. This includes systemic weaknesses in the firm’s financial crime framework and safeguarding arrangements, alongside its ownership and governance. These risks could have had an impact on both consumers and the integrity of the market.The appointment of the interim managers was made by the Court under the Payment and Electronic Money Institution Insolvency Regulations 2021.EES will have an opportunity to be heard on 11 June 2026, following which the Court may lift the current order or place EES into special administration.Notes to editorsDuncan Perring and James Bennett of Teneo Financial Advisory Limited have been appointed as interim managers.The interim managers are officers of the Court, who have been appointed to temporarily oversee EES’ affairs until the next Court date, on 11 June 2026.Further information about the requirements applied to the firm can be found on the FCA Register.

On 28 April 2026, Solvenza Limited (Solvenza) entered administration. Louise Longley and Julian Pitts of BTG Begbies Traynor (Central) LLP (Begbies) were appointed joint administrators. Solvenza (Firm Reference Number: 718517) is regulated by the FCA, authorised to carry out debt purchasing and debt collection activities, which provide debt resolution solutions to consumers.The joint administrators are responsible for managing the affairs of Solvenza during the administration process.Debt Collection Services UK Limited (DCS) has been instructed by the administrators to collect debts owed to Solvenza over the course of the administration.The joint administrators have advised that consumers should continue to make repayments based on existing loan agreements and any arrangements that are in place.The FCA is working closely with Solvenza and the joint administrators to make sure consumers are treated fairly.

On 21 May 2026, Silicon Marketing Limited (Silicon) entered administration. Carrie James and Nick Parsk of Oury Clark were appointed as joint administrators. Silicon (Firm Reference Number: 674008) is regulated by the FCA, authorised to carry out debt purchasing and debt collection activities, which provide debt resolution solutions to consumers. The joint administrators are responsible for managing the affairs of Silicon during the administration process.The joint administrators have advised that all existing loan agreements remain in place and will not be affected by the administration.The joint administrators have advised that customers should continue to make repayments based on existing loan agreements and any arrangements that are in place.The FCA is working closely with Silicon and the joint administrators to make sure consumers are treated fairly.

Investment firms could save around £20m a year under new proposals from the FCA to simplify climate reporting for investment products. The FCA estimates it could deliver these savings by replacing detailed product-level reports based on the Task Force on Climate-related Financial Disclosures (TCFD) with simpler, more targeted information for retail investors, in line with the Consumer Duty.The changes aim to give investors clearer insight into how climate risks – such as floods, storms and other extreme weather events – could affect investment performance, while reducing unnecessary costs to firms.Michelle Beck, director of wholesale buy-side at the FCA, said:'As part of being a smarter, more proportionate regulator, we’re cutting complexity in our rules for asset managers, while keeping the focus on clear, useful information for investors.'These proposals will make it easier for firms to communicate with their customers in ways that genuinely inform and engage them.'The proposals follow a review of how the current rules are working. The FCA found that while the rules have improved firms’ awareness of climate risks, product-level reports are often seen as too complex by investors and not widely used.The FCA is seeking views from asset managers, asset owners, trade bodies, and consumer groups to make sure the proposed rules work in practice and support growth.Notes to editorsThe consultation is open until 13 July 2026. The FCA aims to finalise and implement the rule change in the autumn.Read the consultation paper (CP26/17) and see details on how to respond.The FCA estimates the proposals could save firms around £20m a year, based on its analysis which drew from feedback from industry on reporting costs and a voluntary survey of a sample of firms.The proposals form part of the FCA’s wider work to streamline sustainability reporting requirements for asset managers and FCA-regulated asset owners.Under the proposals:Retail investors would receive relevant information on how material climate risks could affect a product’s financial performance.Institutional clients would be able to request key emissions data from firms, but this would no longer need to be published in full reports.The proposals complement the FCA’s Sustainability Disclosure Requirements for asset managers, which aim to help retail investors navigate the market for sustainable investment products and reduce greenwashing.TCFD product reporting was introduced in 2021 as part of the UK’s approach to climate disclosures.

The Bank of England has published a joint review with the FCA on how the Memorandum of Understanding (MoU) for financial market infrastructure (FMI) is working. The Bank of England and the FCA (the authorities) cooperate on the supervision of FMIs.The authorities consulted with FMIs to assess the effectiveness of cooperation between the Bank and FCA over the past 12 months.Following the responses, the authorities have concluded that the arrangements for cooperation remain effective with appropriate coordination and no material duplication.Both authorities remain aware that, through efficient coordination, we can improve the effectiveness by which we supervise firms.See the findings

The FCA has opened an enforcement investigation into Consultation Claims Limited (CCL) following concerns about its conduct in the period April 2025 to December 2025 in relation to motor finance claims. The FCA is investigating concerns that consumers may have been signed up during the period April 2025 to December 2025 without their consent, with some allegations that signatures have been forged. The FCA is investigating the full customer journey, including how customers were contacted, what they were told during and after sign-up, and the information they were given about exit fees.Announcing the investigation allows consumers who may have unknowingly been signed up or who may have been presented with documents purporting to be signed by them when they have not, to complain to CCL. If those customers are not happy with the firm’s response, they should complain to the Claims Management Ombudsman.The FCA has not reached any conclusions as to what has happened or as to whether CCL has breached any relevant requirements.Notes to editorsThe FCA notified CCL of its intention to announce that it had opened an enforcement investigation on 11 May 2026.If you’ve used a claims management company (CMC) authorised by the FCA, and you're unhappy with how it's handled your case or the fees it’s charged, you should complain. If you’re dissatisfied with the response, you can take your complaint to the Claims Management Ombudsman.If you’ve used a law firm regulated by the Solicitors Regulation Authority, and you're unhappy with how it's handled your case or the fees it’s charged, you should complain. If you’re dissatisfied with the response, you can take your complaint to the Legal Ombudsman. CCL agreed a Voluntary Requirement (VREQ) with the FCA, effective from 8 December 2025 to 2 March 2026. As part of the VREQ, CCL temporarily stopped taking on new customers and wrote to all of its customers offering them a chance to cancel their arrangements free of charge. After CCL had complied with the FCA’s requirements, including by taking action to prevent the practice of customers being sent contracts which may have included false signatures, the VREQ was removed and the FCA permitted CCL to resume taking on new customers.The FCA's enforcement guide sets out its policy on publicising investigations, stating that 'the FCA will not normally make public the fact that it is or is not investigating…' but may do so in exceptional circumstances.The FCA considers that the exceptional circumstances test has been met in relation to this announcement, as it is desirable to maintain public confidence in the UK financial system or the market, protect consumers or investors, and prevent potential widespread malpractice.A joint taskforce between the FCA, SRA, ICO and ASA was announced on 30 March 2026 to tackle poor handling of motor finance claims by some CMCs and law firms.On 6 May 2026, the FCA announced that it is launching a review of the claims management market. Some of the concerns noted include consumers being signed up without their consent.The FCA has removed or amended over 1,000 misleading motor finance adverts, more than 28,000 consumers have been able to exit contracts free of charge, and 3 CMCs reduced their unreasonable fees protecting over 500,000 consumers. Formal investigations are also under way, with 1 previously announced by the FCA in January 2026.

Football clubs have been warned not to put their fans’ cash at risk by signing sponsorship deals with financial firms that aren't allowed to operate in the UK. According to the FCA, a number of unauthorised firms, including crypto businesses and trading platforms, are using sponsorship to target unwitting football fans.These unauthorised firms may be breaching UK financial services laws by providing financial services in the UK without authorisation. Fans using these firms risk losing all their money.The FCA has written directly to football clubs, mainly in the Premier League, to warn about their relationships with these firms and remind them of their responsibilities to fans.Lucy Castledine, director of consumer investments at the FCA, said:'Millions of football fans trust their club’s badge. Clubs should not let unauthorised financial firms exploit that loyalty by putting potentially dodgy products in front of millions of fans.'A logo on a shirt means one thing: that firm paid for it. Fans should always check the firm using our Firm Checker tool before buying a financial product and help us show the red card to those that would risk your money.'For fans: what you need to knowIt doesn't matter how prominent the branding is, which club it sponsors or how professional the app looks. If the sponsoring firm provides financial services and is not on the FCA Firm Checker, it is not regulated, and you will likely have no protection if things go wrong.You should check any financial services firm before you use them.For clubs: what the FCA expectsSponsorship deals with unauthorised financial services firms don't just harm fans. They potentially expose clubs to legal liability, money laundering risks and serious reputational damage.The FCA expects every UK football club to conduct proper due diligence on financial services sponsors before signing, and on an ongoing basis. Where the FCA has already identified concerns, it has spoken directly to the club. Where action is needed, the FCA will take it.The FCA is engaging with the Government and external partners like the Premier League and the Independent Football Regulator to tackle this across the sport.Notes to editorsRead the letter to football clubs (PDF).Consumers can check whether a firm is authorised by using the FCA Firm Checker.The FCA regularly publishes warnings about unauthorised firms and scams on our Warning List.In the UK, firms must be authorised by the FCA – or have their adverts approved by an authorised firm – before they can promote financial products or services to consumers.Sports Minister Stephanie Peacock said: 'Sponsorship deals play a vital part in sustaining our football pyramid, but fans deserve to know that the companies associated with their clubs are responsible, accountable and safe to use.'

The UK Payments Initiative (UKPI) announcement signals a major step forward for open banking and commercial variable recurring payments (cVRP). The launch of UKPI paves the way for greater payments competition, innovation and economic growth.Read the announcement.The industry-led scheme will give people more choice about how and when they pay for recurring goods and services.We want to see competition between commercial open banking schemes and expect the launch of the first scheme by UKPI to act as a catalyst for other initiatives to emerge.To strengthen this next phase of open banking, we are supporting industry efforts to establish an independent standards-setting body, and – subject to legislation expected to give us new powers – will consult on a long-term regulatory framework by the end of 2026.We have also published our regulatory roadmap for open finance to build on the data-sharing foundations established by open banking. This will give consumers and businesses greater control over their financial data to help secure better deals.

On 29 May 2026, Halo Financial Limited (Halo) entered special administration. Louise Longley and Bai Cham of BTG Begbies Traynor (Central) LLP (Begbies) were appointed as joint special administrators. Halo is authorised by the FCA to provide payment services under the Payment Services Regulations 2017 (the PSRs). On 30 April 2026, Halo agreed to a voluntary undertaking, which restricted the activities it can carry out, including conducting payment services and accepting any additional funds. Find more details on the Financial Services Register.As Halo continues to be authorised by us, we will continue to engage with the special administrators and seek the best outcomes for consumers.

In its 19 May 2026 judgment, the High Court approved pro rata distribution to eligible investors of money recovered by the FCA from Argento Wealth Limited (AWL). Eligible investors must act by 1 August 2026. You can receive a share of the money recovered if you:Invested in the AWL Loan Scheme; orInvested in the EMB Scheme and if your investment was arranged by AWL or its sub-distributors.We will make payments to eligible investors, as defined in the court judgment, who provide their bank account details on or before 1 August 2026.If we do not have your bank details by this date, then you will be unable to receive a distribution payment.The same applies if we are not aware of your investment by that date.We will write to eligible investors named in Appendices 1 to 2 of the court order using the contact details we already hold. Appendices 1 to 2 are not being published for privacy reasons.If you have not previously been in contact with us, but you invested in the AWL Loan Scheme or in EMB Fund Limited (via AWL or its sub-distributors) and you think you may be eligible, please contact us as soon as possible, and no later than 1 August 2026.If we have previously contacted you but your details have changed, please also contact us as soon as possible, and no later than 1 August 2026.When contacting us, please include:Your full name.Your current home address and email address.Your home address and email address at the time you made the investment (if different).Details of your investment and the total amount invested.Your bank account details for payment, including account number, sort code and/or IBAN, and the account holder names.Please send this information, preferably by email to: opbloomfieldinvestors@fca.org.ukAlternatively, you can write to: Freepost – RTZE – RHAL – URAJ, Unauthorised Business Department – RE01157, Financial Conduct Authority, 12 Endeavour Square, London E20 1JN.More informationRead the High Court’s order for distribution (PDF) (with Appendices 1 to 2 listing investor names omitted for privacy reasons).Read the court’s judgment (PDF).

Financial firms have made progress in preventing sanctions breaches – with £37bn worth of assets frozen in the UK as of last year – but gaps remain, warns the FCA. The Office of Financial Sanctions Implementation (OFSI) and the Office of Trade Sanctions Implementation (OTSI) implement financial and trade sanctions. The FCA supports them through its role supervising firms within the financial services sector. This includes checking they have adequate sanctions systems and controls.Since February 2022, the FCA has proactively assessed the sanctions systems and controls of over 150 firms across a range of financial services sectors. In its latest review, the FCA found:Repeated examples of firms exhibiting strong controls and identifying potential sanctions breaches before they occurred.The most common root causes of reported sanctions breaches were weaknesses in due diligence, alert management, transaction and name screening, as well as the management of frozen assets and compliance with licences. Firms face challenges in detecting and preventing specific breaches of trade sanctions.The range of controls used for trade sanctions compliance - related to bans on the export and import of goods, technologies and services - was greater than those used for financial sanctions.The regulator is sharing good and poor practice it identified to help all firms further strengthen their sanctions controls.Reports from firms continue to relate primarily to the Russian sanctions regime, but the FCA also saw reports relating to Libya and, increasingly, Iran and North Korea.Today (28 May), the FCA has signed a Memorandum of Understanding (MoU) with OTSI (PDF). It sets out the arrangements for cooperation and the sharing of intelligence between the two organisations.There is already an MoU between the FCA and OFSI (PDF).Notes to editorsSanctions systems and controls in our firms: our findings.The FCA previously looked at firms’ sanctions systems and controls in 2023.

On 22 May 2026, Sukate & Bezeboh Ltd (SB Remit) entered administration. Charles Turner and Frank Ofonagoro were appointed as joint administrators. SB Remit is a small payment institution authorised by the FCA to provide payment services.On 13 May 2026, SB Remit agreed to a voluntary undertaking, which restricted the activities it could undertake. These measures included restrictions preventing the firm from accepting new customer funds.On 22 May 2026, Charles Turner and Frank Ofonagoro of Opus Restructuring LLP were appointed as joint administrators.Further details of the restrictions placed on the firm are available on the Financial Services Register. The joint administrators are responsible for:Managing customer claims against SB Remit.Returning funds to customers where possible.As SB Remit continues to be authorised by us, we will engage with the joint administrators to seek the best outcomes for customers.

Firms that approve financial promotions should be doing more to protect consumers, an FCA review has found. The FCA found that the strongest firms were applying the Consumer Duty from the start of their processes. They were able to make sure that every promotion approved was accurate, clear and reached the right audience.However, the FCA also found that some firms approved adverts with unsubstantiated claims or allowed retail investors to see promotions intended for professional clients. In some cases, firms relied on third-party templates instead of doing proper checks themselves.The review focussed on sampling promotions that had been approved since the firm was authorised.Lucy Castledine, director of consumer investments at the FCA, said:'Consumers see these promotions daily - in social media feeds, online adverts, websites and apps. When approvers fail in their responsibilities, people can be misled into harmful financial decisions. 'Firms must make sure every promotion they sign off is fair, clear and not misleading.' As a result of the FCA's work, one firm has already had to conduct a remediation exercise and some websites have been blocked to retail customers.The FCA will continue to monitor compliance and will hold firms that fall short to account.Notes to editorsThe review assessed 10 authorised firms that approve financial promotions for businesses which are not authorised by the FCA.Section 21 approvers are FCA-authorised firms that have the permission to approve financial promotions for businesses that aren't authorised. They must check that these promotions follow FCA rules, so the products can be legally marketed to UK consumers.The FCA looked at firms who were approving financial promotions for Buy Now Pay Later, crowdfunding and corporate finance firms. The rules on authorised firms approving promotions for unauthorised firms came into force on 7 February 2024.

We’re inviting applications from senior practitioners at smaller regulated firms in the general insurance and consumer credit sectors to join the panel. The Smaller Business Practitioner Panel provides independent advice and challenge from the perspective of smaller firms, helping to shape our work at a time of significant change in UK financial services regulation.Its key remit is to provide input to the FCA from the industry to help us meet our strategic and operational objectives from a smaller business standpoint.The deadline for applications is 11.59pm on Sunday 28 June 2026.Find out more and how to apply (PDF).

We’re pleased to announce that our Annual Public Meeting (APM) will be held in Edinburgh for the first time on 6 October 2026, marking an important milestone for us a UK-wide regulator. The announcement coincides with a visit to Edinburgh on 26 May by our chair Ashley Alder, who was there to open a new office space, demonstrating our commitment to growing our presence in Scotland, and expanding our workforce of more than 350 colleagues.Edinburgh continues to strengthen its position in global financial centre rankings, underlining Scotland’s importance to the UK’s financial services sector and its international competitiveness.The decision to host the APM in Edinburgh reflects our ongoing investment in Scotland and our commitment to serving consumers and firms across the whole of the UK. The APM will take place at the Assembly Rooms and will be a hybrid event, with people able to join online as well as in person, helping to widen participation.Ashley Alder, chair of the FCA, said: 'Bringing our Annual Public Meeting to Edinburgh for the first time is a deliberate step to strengthen our visibility and accountability right across the UK.'Scotland is a critical part of the UK’s financial services sector, and as we continue to grow our presence here, we want to be closer to consumers and the firms we regulate. Holding the APM in Edinburgh, reflects our focus on being more outward-facing, more engaged, and better connected to the markets we serve.'Chris Cummings, chief executive of the Investment Association said: 'Edinburgh has a long heritage as a leading centre for financial services, including investment management, and it’s great to see that recognised as the city hosts the FCA’s Annual Public Meeting. This is the first time the meeting has been held outside London, underlining both Edinburgh’s importance to the financial services sector and the FCA's role as a UK-wide regulator.'Derek Mitchell, chief executive of Citizens Advice Scotland: 'We welcome the continued commitment and presence of the FCA in Scotland by holding their Annual Public Meeting in Edinburgh. This creates a stronger connection and gives greater voice to the consumers that Citizens Advice Scotland represents.'Sam Ghibaldan, chief executive of Consumer Scotland said: 'Consumer Scotland has a strong relationship with regulators, including the FCA. I am delighted the FCA has chosen to hold its Annual Public Meeting in Scotland for the first time. Consumers in Scotland face a variety of challenges such as access to cash, affordable credit and financial inclusion, and we look forward to continuing our work with the FCA on these issues.'

Fast‑growing and innovative financial services businesses can now apply for more support to help them grow. The FCA’s Scale-up Unit provides tailored support to firms, helping them navigate regulation so they can scale sustainably. The unit is now open to solo-regulated firms to apply.The unit offers a dedicated point of contact and practical support to help navigate regulatory processes, develop innovative products and understand the impact of policy changes.Jessica Rusu, FCA chief data, information and intelligence officer, said:'We want firms to be able to grow with confidence. This initiative will help them navigate regulation, scale sustainably and contribute to making the UK the best place to start and grow a financial services business.'The FCA and PRA are already supporting 6 dual-regulated firms through the Scale-up Unit as part of a pilot. This has provided the FCA insight into how it can best support growing firms and will continue this dialogue with solo-regulated firms.The FCA will use insights from participating firms to inform wider policy and process improvements, ensuring regulation keeps pace with innovation.Applications for FCA solo-regulated firms to join the Scale-up Unit are open from 20 May to 22 June 2026.Notes to editorsRead more about the eligibility criteria for solo-regulated firms and how to apply to the Scale-up Unit.Read more about the Scale-up Unit.The Scale-up Unit sits alongside the FCA’s existing programmes, including Innovation Pathways, Pre-Application Support Service (PASS) and Early and High Growth Oversight function, creating a clear pathway from start-up to scale-up.

Half (49%) of young drivers have bought insurance through social media or messaging apps, new research reveals. With 4 in 10 (39%) unconfident in spotting the signs of a fake policy, thousands could be paying for cover that doesn’t exist. The FCA is warning 17-to 25-year-old drivers about 'ghost broking' scams where criminals sell bogus insurance policies through social media and messaging platforms.Ghost brokers pose as legitimate insurance sellers but offer cheap rates. The policies they sell are either entirely fake, are invalid because they falsify details to bring the price down, or are cancelled shortly after purchase. Victims are left unknowingly uninsured and at risk of prosecution, fines and even having their car seized.Almost half of those polled (45%) said they generally trust products or services bought through social media. Young drivers may also be at greater risk due to cost of living pressures – with 1 in 7 (15%) saying they find it difficult to fit insurance into their monthly budget.To avoid being taken for a ride, the FCA is urging young drivers to:Be wary of offers that sound too good to be true.Avoid deals only available through social media and messaging platforms. Genuine sellers should have a legitimate website, phone number and address.Use the FCA Firm Checker to confirm the firm is authorised. Drivers should check the firm’s contact details match those listed on Firm Checker to make sure they are dealing with the genuine firm.Graeme Reynolds, director of insurance at the FCA said:'Tight budgets make cheap offers tempting – and scammers take advantage of that. Don’t get ghosted by a policy that doesn’t exist. Check the FCA Firm Checker before you buy, because driving uninsured could cost you far more than any premium.'The FCA is working with social media influencers to warn young drivers about the growing threat of ghost broking.Notes to editorsInformation for consumers on ghost broking.Survey conducted by Kantar from 24 April to 1 May 2026 among 1,000 UK drivers aged 17 to 25.The Insurance Fraud Bureau and Aviva both report an increase in ghost broking. The Insurance Fraud Bureau found a 52% increase in ghost broking activity from 2022 to 2024 and Aviva saw a 22% surge in cases since 2023.Driving without valid insurance is a criminal offence in the UK and can result in a fixed penalty, points on a licence, or disqualification.The campaign supports the Government’s Motor Insurance Taskforce goals to tackle uninsured driving, fraud and crime.Fighting financial crime is a priority for the FCA, as part of its 5-year strategy.

When consumers are wronged, many rightly seek fair compensation. Some complain directly, without paying a penny using free Ombudsman services. Others turn to claims management companies (CMCs) or law firms.They can provide a valuable service and support access to justice.However, we’ve seen firsthand from the way some claims firms have handled car finance complaints that, all too often, they make a difficult situation worse.Poor practices include unwanted texts or emails sent to people who never asked to be contacted, driving 6 million complaints to the Information Commissioner’s Office; misleading adverts, particularly on social media, promising returns that don’t stack up; unfair cancellation fees quietly buried in contracts; consumers being signed up – sometimes to multiple claims firms – without meaningful consent; and reports of fraudulent signatures.All of this leaves consumers harassed, confused, potentially misled, and out of pocket.