Regulators in the United Kingdom are releasing new regulations for influencers and memes that promote financial products.
In a new press release, the UK’s Financial Conduct Authority (FCA) is giving out new guidelines on how social media can be used to promote financial products, including fintech and digital assets, as a means of combating fraud.
According to the FCA, in the future, influencers may not be allowed to promote financial products – including through memes – without the approval of an FCA-authorized person.
“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.
And influencers are reminded that promoting a financial product without approval from an FCA-authorized person with the right permission could be a criminal offense.”
Lucy Castledine, Director of Consumer Investments at the FCA, says in the press release that in 2023, regulators removed over 10,000 misleading advertisements alone.
“Any marketing for financial products must be fair, clear and not misleading so consumers can invest, save or borrow with confidence. Promotions aren’t just about the likes, they’re about the law.
We will take action against those touting financial products illegally. Social media will not always be the best place to promote complex products. Firms need to consider whether a platform that offers limited characters or space is the right place to do so.”
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