Financial Promotions Under The Microscope: Why Your Website Could Be Your Biggest Compliance Risk

Most businesses worry about FCA inspections, paperwork and customer complaints, but ironically, one of the biggest compliance risks is often sitting in plain sight on their own website. This is because websites are updated regularly with little thought about compliance, and web teams often make changes without understanding the FCA rules surrounding financial promotions. Therefore, a seemingly minor website update can unintentionally create a significant compliance issue. Unlike a printed advert, a website is constantly evolving. Every time a page is updated, a new banner is added or finance wording is changed, there is the potential to create a fresh financial promotion that should be reviewed for compliance. That is why the FCA has made it clear that financial promotions will remain an area of focus across multiple sectors.

Why websites have become a compliance hotspot

Websites are finding themselves in the FCA spotlight because they are rarely static. Businesses will regularly update many features on their website, from homepage banners to offers, blogs and pop-ups. Every one of those updates has the potential to become a financial promotion if you are not careful.

This creates risk because web teams are typically focused on generating inquiries, increasing conversions, and improving click through rates, while compliance partners are responsible for ensuring communications meet regulatory requirements. Unless both of those teams work together, then mistakes can happen. Whilst they might collaborate when the website is first being put together, they can often forget to check when uploading a small change.

The disclaimer myth

One of the most common misconceptions is that adding a disclaimer solves every compliance problem. Businesses often believe that if they add a few lines of small print, they can make whatever headline claims they like. Simply adding “terms apply”, “subject to status” or “representative APR applies” is just not enough.

Instead, the FCA expects Financial promotions to be clear, fair and not misleading, with important information presented prominently rather than hidden away. A disclaimer can be used, but it should be there to clarify information, not correct a misleading headline. The FCA works on the principle that firms should not hide key information in footnotes or obscure text, so they will be on the lookout for this sort of thing.

Social media is no longer the Wild West

Once upon a time, social media might have seemed to be a more relaxed platform, but these days the FCA applies exactly the same principles. Whether the promotion appears on Facebook, Instagram, LinkedIn, Tiktok or X, the same FCA standards apply.

Representative examples and APR

Many businesses advertise monthly payments, interest rates or finance offers without understanding when a representative example is required.

A representative example gives consumers important information such as the representative APR, the cash price, deposit, or the total amount payable. It also highlights the duration or the amount of repayments. The purpose of this is to allow consumers to understand the true cost of borrowing. However, it is important to remember that not every finance advertisement will require a representative example, as this will depend on how the finance is promoted and what information is already included in the advertisement.

Common website mistakes

One of the most common mistakes is not advertising finance on a homepage banner or linking customers to an application form. The problem arises when that financial promotion doesn’t include the information the FCA requires customers to see clearly and prominently before they click. If key finance information, representative examples or required risk information are missing or not sufficiently prominent, the promotion could fall short of FCA expectations.

Another common issue is product pages displaying finance options while the representative information is missing or difficult to find.

Due to the limited screen space of mobile websites, important information can be hidden, requires excessive scrolling or appears in a small font that is hard to read. This means that mobile optimisation matters from a compliance perspective, not just for SEO purposes.

The growing influencer problem

Influencer marketing has expanded into many sectors, with businesses increasingly working with a wide range of creators and ambassadors. However, if those individuals promote finance on behalf of the business, the FCA rules will still apply. Businesses remain responsible for ensuring that financial promotions comply, meaning creators cannot simply say whatever they like when promoting finance.

This applies whether influencers are talking about vehicle finance, cosmetic procedures, home improvements or retail finance.

Why internal approvals matter

Many compliance issues happen because marketing creates content that compliance never gets to see. This is why it’s important for businesses to have thorough approval processes in place, as well as documented sign-off and version control. They also need to carry out periodic website reviews to ensure nothing has slipped between the cracks. Compliance is something that should be happening before publication and not afterwards.

What businesses should be doing now

Businesses need to take control of their financial promotions by auditing their website and social media output. They also need to review their finance wording, banners and landing pages and check any representative examples. This is a good opportunity to review any disclaimers and also train marketing teams and sales staff to ensure that your business is taking a proactive approach rather than a reactive one.

Websites are living documents that evolve constantly, and every update has the potential to introduce a new compliance risk. Even relatively small marketing changes can have significant regulatory consequences, which is why financial promotions should never be treated as an afterthought. Regular reviews, robust approval processes and close collaboration between web and compliance teams can help to identify issues before they become regulatory problems. Your website is often the first place a customer encounters your finance offering, so it should create the right impression for both your customers and the regulator.