In its latest Perimeter Report, the Financial Conduct Authority (FCA) has called for legislative change to address concerns beyond its remit.
It revealed that duties on internet companies in the Online Safety Bill should extend to paid-for advertising, as well as user-generated content.
The FCA also believes that the bill should designate content relating to fraud offences as ‘priority’ illegal content and so require monitoring and preventative action by platforms.
The FCA publishes an annual Perimeter Report as part of its accountability to parliament and to support regular dialogue with the government on the regulatory regime.
According to the FCA, it has called again for amendments to the Financial Promotions Order, with current exemptions meaning more ordinary investors are at risk of receiving financial promotions, including for high-risk products, that do not have to comply with the FCA’s rules.
Nikhil Rathi, chief executive of the FCA, said: “The FCA is committed to being more innovative, assertive and adaptive. That means being more proactive at the limits of our regulation, working with partners and other agencies where we don’t have powers and setting out where we believe more powers are necessary.
“We see real risks to consumers from outside our remit from both online advertising and from those using exemptions to sell products to ordinary customers. Change is needed and we will continue to push for powers where we need them.”
The report will form the basis of a formal discussion between Rathi and the economic secretary to the treasury (EST) before the end of the year.