Google revealed in a letter to the FCA, published today, that it changed its policy late last year on financial ads which promise ‘unrealistic’ returns.

FCA chief executive Nikhil Rathi and FCA chairman Charles Randell met with Google UK & Ireland managing director Ronan Harris last week to discuss concerns about financial advertising.

The FCA and Google have pledged to work closer to tackle scam or dubious financial advertising.

The FCA has been vocal in recent months about scammers using Google and other search engines to target investors with ads promising unrealistic or undeliverable returns.

A number of recent financial disasters have been blamed on inexperienced investors being lured into parting with their money by ads on Google and other search engines promising unrealistically high or undeliverable returns.

Industry commentators and regulators have warned about a surge in scam financial advertising ranging from clone websites to fraudulent claims about returns.

Google changed is advertising policy on ‘unrealistic returns’ on 28 December, it said in the letter.

The change was made to implement restrictions on ads “related to financial products or money making schemes.”

The firm began changing its policy on 28 December with full implementation by the end of January.

Financial Planning Today has asked Google for a definition of ‘unrealistic returns’ and details of the number of advertisers and advertisements that have been barred so far.

Mr Harris said in his letter to the FCA: “Tackling bad actors who seek to defraud consumers is a complex challenge that requires a multifaceted response. Our teams are working hard to address these challenges, prioritising efforts that allow us to protect users from these threats at scale.”

Google’s new policy on unrealistic returns says: “The updated policy will prohibit making unrealistic promises of large financial return with minimal risk, effort or investment. Examples of prohibited claims include guaranteeing returns, or promising returns that are unrealistic or exaggerated for the advertised investment product, presenting investment products as risk-free or downplaying the risk of investment opportunities.

“Violations of this policy will not lead to immediate account suspension without prior warning. A warning will be issued, at least 7 days, prior to any suspension of your account.”

Google says it has been working over the past year to implement its Google Ads policies and added increased enforcement by its trust and safety teams.

In July last year it updated its financial services policy requiring financial services advetisers to complete its Business Operations Verification . This requires advetisers to provide futher information about their business model, services offered and relationships with other brands or third paties.

Google has said it has the right to suspend any  financial services advetiser accounts while they complete Business Operations Verification. Businesses must also submit personal legal identification, business incorporation documents or other information to prove who they are. Ads will then show their names and location.

Google says the UK has been “prioritised” for this tougher financial advertising policy began in January.

The search engine has warned that “our adversaries are sophisticated and dynamic” and it will continue to learn how to tackle “bad actors.”

Google has been co-operating with the FCA by sharing additions to the FCA warning list on suspect firms since February last year.