The Financial Conduct Authority (FCA) plans to take another significant step in its work to combat illegal and non-compliant financial promotions.
The proposals for new social media guidance will modernise the information firms should use when promoting financial products or services online. For example, the FCA is consulting on extending its guidance to reflect the current ways social media is being used to advertise financial services and products.
Lucy Castledine, Director, Consumer Investments at the FCA, said:
“We’ve seen a growing number of ads falling short of the guidance we have in place to stop consumer harm. We want people to stay on the right side of our rules, so we’re updating our guidance to clarify what we expect of firms when marketing financial products online. And for those touting products illegally, we will be taking action against you.”
The FCA has been ramping up its scrutiny of online, often illegal, financial promotions, recognising the significant increase in notoriety of ‘finfluencers’ and the potential for consumer harm taking place online.
The FCA has also teamed up with the Advertising Standards Authority to help educate consumers and influencers about the risks involved in promoting financial products. This work has included an infographic, roundtable discussions and live events to build up awareness of the harm that can take place.
The new social media guidance supports two of the FCA’s core commitments set out in the 2023/24 business plan to reduce and prevent serious harm and set and test higher standards.
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