The majority of FCA warnings are about financial services that provide services (or seem to) without a license. This is a serious infraction, but many consumers don’t think to check the license of a broker or take their statements about licensing at face value.
Often, unlicensed brokers will also make false claims about what kind of returns they can offer customers or about their credentials. Others may be clone brokers, in other words, imposters who adopt a name similar to a licensed broker to deceive the public.
A broker may be flagged for non-compliance with regulations or if they are an FCA licensee, not reporting their financials. Although unjust complaints happen often on the internet, if a broker has received a steady number of consistent and credible complaints, to the regulator and not on just a review site, they are likely to be flagged. The FCA will also notify the public if a broker is facing legal action, has become insolvent or has had a cease and desist order filed against it.