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Tightening UK controls on fraudulent online financial advertising: tougher Ofcom codes under the Online Safety Act 2023, FCA sanctions, platform pre‑vetting and cross‑sector data‑sharing

Published on: 21 May 2025

Published by a Law360 reporter
Legal News
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Article summary

A regulatory regime with fines for a wider range of activities than the government has potentially considered could force Big Tech to take a more active approach to prevention, advocates for reform say.

Doing so would mean strengthening the Online Safety Act 2023 (OSA 2023), in effect from 17 March 2025, and bolstering it with additional laws. The Financial Conduct Authority (FCA) is already pushing for harsher custodial terms for those promoting unauthorised online financial products. Yet regulatory lawyers contend that maximising expectations under the Act, which captures fraudulent advertising by Big Tech, alongside complementary legislation, would drive platforms to take firmer preventative steps themselves. Mark Williamson, a partner at Clyde & Co LLP, said the government should make clear to Big Tech that fraudulent advertising is treated as seriously as other online safety issues, by setting exacting standards and being willing to exercise its powers appropriately under the Online Safety Act where platforms repeatedly fail to stop such adverts. He added that the government and Ofcom ought to require platforms to deploy the latest AI-driven monitoring tools to identify and quickly remove dubious financial adverts in real time, and to use their powers if firms fall short of standards...

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