FCA publishes updated guidance in relation to financial promotions on social media

The FCA has published a finalised guidance document – FG24/1 – on how financial promotions should be communicated on social media, and has warned firms and finfluencers to keep their social media ads lawful. Financial promotions on all advertising channels should be fair, clear and not misleading, and support consumer understanding. The FCA want firms to ensure that promotions provide a balanced view of the benefits and risks, and clearly communicate information that will help consumers make effective, well-informed decisions.

This Guidance will be relevant to:

  • Authorised persons involved in communicating or approving financial promotions on social media.
  • Unauthorised persons, including influencers or other affiliate marketers, involved in communicating financial promotions on social media.
  • Trade bodies that represent the above groups.

Notes to consider;

  • Firms need to consider whether a platform that offers limited characters or space is the right place to do so. Scrutiny of financial promotions has been ramped up and last year the FCA removed over 10,000 misleading adverts, up from around 8,500 in 2022.
  • For unauthorised persons, including influencers or other affiliate marketers, the Guidance explains when a firm’s communications might fall within the regulatory perimeter and how the FCA rules apply to a firms activities.

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