Briefing Note: FCA Influencer New Guidance 26th March 24
The Financial Conduct Authority (“FCA”) today published updated guidance: ‘Finalised guidance on financial promotions on social media’
The FCA has set out how adverts across social media channels must be fair, clear and not misleading, meaning they must have balance and carry the right risk warnings so people can make well informed financial decisions.
Social media has become a central part of firms’ marketing strategies. Firms are on the hook for all their promotions and the FCA has warned they need to ensure influencers they work with communicate to their followers in the right way.
Influencers are reminded that promoting a financial product without approval from an FCA-authorised person with the right permission could be a criminal offence.
Consumers need to be alert to dubious adverts and scams online, but it is important that influencers ensure they’re on the right side of the rules and consider what would happen to their own reputations if they’re found to promote products illegally.
The FCA has ramped up its scrutiny of financial promotions. Last year the financial regulator removed over 10,000 misleading adverts. This is up from around 8,500 in 2022.
Here is the Finalised guidance on financial promotions on social media. Members should pay special attention to chapter 4 - which concentrates specifically on influencers.
Background
● IMTB members were invited to meet the FCA at a roundtable event in March 2023.
● In July 2023, the FCA consulted on updated guidance for financial promotions on social media.
● IMTB members received a briefing report outlining the scope of the consultation. We later submitted a formal response to the consultation.
● In September 2023 the FCA attended an IMTB members’ meeting to discuss the proposed updated guidance.
Information obtained through our IMTB membership.
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