The UK’s financial watchdog has issued further guidance on how companies can ensure their financial promotions comply with the law.
The Financial Conduct Authority (FCA) says it is looking to modernise the information firms should use when promoting financial products and services online or on social media. 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 of 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.”
She said the FCA has been ramping up its scrutiny of online, often illegal, financial promotions, focusing on the increase of the use of ‘finfluencers’ – people with public social media platforms who offer advice about money and investment. It has also collaborated with the Advertising Standards Authority to help educate consumers and influencers about the risks involved in promoting financial products.
- New advertising rules for crypto firms marketing to UK consumers will come into force this Autumn. From 8 October 2023, the FCA will ban incentives to invest in crypto, such as ‘refer a friend’ bonuses. Firms must also introduce clear risk warnings and a 24-hour cooling period to give first-time investors the time to consider their investment decision. These measures are similar to the regime in place for other high-risk investments.
