The UK’s financial watchdog has said it wants to clamp down on illegal and misleading financial marketing.

The Financial Conduct Authority (FCA) has proposed new measures that will force financial services providers to show they have the “right expertise” for the promotions they want to approve.

Under existing rules, any firm authorised by the FCA is allowed to approve financial promotions on behalf of other firms who are not authorised by the regulator.

The authority said that changes being introduced by parliament will give the FCA greater oversight, as measures will require authorised companies to face new screening checks before they are able to approve promotions.

The FCA says that the move will help it "crack down on rogue adverts", as firms will also be required to regularly report back to the organisation on financial promotions they have approved.

“Social media and online advertising means that consumers are taking less time between seeing a promotion and making a financial decision,” said Sarah Pritchard, executive director, markets, at the FCA. “It is, therefore, essential that they are equipped with the right information at the right time so that they can make good financial decisions. This is especially important as we face the rising cost of living.”

“These proposals will ensure those approving ads have the appropriate expertise and are held accountable for the promotions they sign off.”

The move comes after the FCA announced it was working on strengthening rules around adverts for high-risk investments and "being more assertive" in removing misleading ads.

The organisation also recently called on trading apps to reconsider game-like design features, which the regulator says pushes consumers to invest in products they wouldn’t usually.

It warned that while gamification can engage consumers, it is being used in ways that can mislead consumers and drive problem behaviours.

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