The Financial Conduct Authority (FCA) plans to take another important 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.
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.
The new guidance will be consulted on over the next eight weeks.
