Financial Conduct Authority
FCA bans motor finance firm’s range of online adverts
The Financial Conduct Authority (FCA) has banned a number of online adverts issued by Rix Motor Company Ltd (Rix).
Posts on Rix’s Instagram account and adverts on three of its websites relating to credit broking of car finance breached FCA rules for one or more of the following reasons:
- representative examples of the cost of credit to the consumer were either missing from the advert or unlikely to be seen
- the advert didn’t make clear whether consumers were dealing with a credit broker or a lender
- the advert didn’t specify the legal name of the firm as it appears on the Financial Services Register so that consumers could easily check that Rix Motors was authorised.
Rix has now withdrawn the adverts and the FCA has directed Rix not to breach these rules again. Under the rules, all financial promotions must be clear, fair and not misleading, including on social media.
Jonathan Davidson, Executive Director of Supervision – Retail and Authorisations, yesterday said:
“When customers are buying a car on finance, it is really important that they are able to understand how much is going towards the finance and how much is being spent on the car.
“They always have the choice to get the finance separately, so knowing how much it costs allows them to make informed decisions about whether they are getting the best deal.
“We will not hesitate to take action where we see adverts that don’t allow customers this clarity.”
The FCA previously raised concerns with Rix Motors about its online adverts in 2017 and 2018, which Rix addressed.
Notes to Editors
- The FCA has a legal power under Section 137S of the Financial Services and Markets Act 2000 to ban financial promotions.
- The FCA has previously used these powers twice – once against London Capital and Finance in December 2018 and again more recently against a Claims Management Company in May 2019.
- The Supervisory Notice issued to Rix Motor Company
- The FCA’s financial promotions pages
- We previously highlighted concerns that motor finance firms were not complying with relevant financial promotions rules in November 2018.
Latest News from
Financial Conduct Authority
Update on Business interruption insurance test case appeals process29/09/2020 15:38:00
The deadline for parties to the FCA’s Business interruption insurance test case to file a 'leapfrog' application to appeal to the Supreme Court any aspects of the High Court’s Judgment was yesterday, Monday 28 September 2020.
Konstantin Vishnyak found not guilty of destroying documents29/09/2020 14:10:00
In a case brought by the Financial Conduct Authority (FCA), Konstantin Vishnyak has been found not guilty at Southwark Crown Court of one count of destroying documents in September 2018.
FCA institutes criminal proceedings against three former employees of Redcentric Plc25/09/2020 10:25:00
The FCA has begun criminal proceedings against three former employees of Redcentric Plc: Fraser Fisher, former Chief Executive; Timothy Coleman, former Chief Financial Officer; and Estelle Croft, a former finance director.
FCA launches consultation on the regulation of international firms24/09/2020 10:25:00
The FCA yesterday launched a consultation on its approach to the authorisation and supervision of international firms operating in the UK.
FCA sets out proposals to tackle concerns about general insurance pricing23/09/2020 10:25:00
The FCA yesterday published the final report of its market study into the pricing of home and motor insurance.
Christopher Woolard to chair review of unsecured credit market regulation17/09/2020 14:10:00
The Financial Conduct Authority (FCA) has announced that Chris Woolard will chair a review of the future regulation of the unsecured credit market, reporting to the FCA Board.
FCA proposes the next stage of support for consumer credit and overdraft customers17/09/2020 10:25:00
The Financial Conduct Authority (FCA) has announced proposals to ensure that firms provide tailored support for users of consumer credit and overdraft products who continue to face payment difficulties due to coronavirus (Covid-19).
FCA publishes Decision Notice against Corrado Abbattista for market manipulation16/09/2020 14:10:00
The FCA has published a Decision Notice today in respect of Corrado Abbattista, an experienced trader and a portfolio manager, partner and Chief Investment Officer at Fenician Capital Management LLP, for market abuse, imposing a financial penalty of £100,000 and prohibiting him from performing any functions in relation to regulated activity.