The Financial Conduct Authority has called for an extension of its powers in its latest Perimeter Report.

It has called for further powers over online advertising to stop high risk investment products being pushed to ordinary consumers.

The FCA wants to see amendments to the Financial Promotions Order to plug loopholes.

Current exemptions to the Order mean that ordinary investors are at risk of being targeted by financial promotions online, including for high-risk products, that do not have to comply with the FCA's rules.

The FCA called for “legislative change to address concerns beyond its remit.”

The regulator’s report recommends that duties on internet companies in the Online Safety Bill should be extended to paid-for advertising as well as user-generated content.

The FCA said that the Bill should designate content relating to fraud offences as ‘priority’ illegal content and so require monitoring and preventative action by digital platforms.

Nikhil Rathi, chief executive of the FCA, said: “The FCA is committed to being more innovative, assertive and adaptive. That means being more proactive at the limits of our regulation, working with partners and other agencies where we don’t have powers and setting out where we believe more powers are necessary.

“We see real risks to consumers from outside our remit from both online advertising and from those using exemptions to sell products to ordinary customers. Change is needed and we will continue to push for powers where we need them.”

The FCA perimeter is decided by the Government and Parliament through legislation. Many financial products are outside the perimeter or on the border.

The regulator also called for an extension of the Senior Managers and Certification Regime to payment and e-money firms.

The FCA publishes an annual Perimeter Report as part of its accountability to Parliament and to support dialogue with the Government on the regulatory regime.

The report will form the basis of a formal discussion between Mr Rathi and the Economic Secretary to the Treasury before the end of the year.