Regulators in the UK are releasing new regulations for influencers and memes promoting financial products.
In a new press release, the UK Financial Conduct Authority (FCA) is issuing new guidance on how social media can be used to promote financial products, including fintech and digital assets, as a means to combat fraud.
According to the FCA, influencers may in future be banned from promoting financial products – including through memes – without the approval of an FCA authorized person.
“The FCA has set out how advertising on social media channels must be fair, clear and not misleading, meaning they must be balanced and contain appropriate risk warnings so people can make informed financial decisions. Social media has become a central part of companies’ marketing strategies.
Companies are on the hook for all their promotions and the FCA has warned that they must ensure the influencers they work with communicate properly with their followers.
And influencers are reminded that promoting a financial product without the consent of an FCA authorized person with appropriate consent could be a criminal offence.”
Lucy Castledine, Director of Consumer Investments at the FCA, said in the press release that regulators will have removed more than 10,000 misleading advertisements in 2023 alone.
“Any marketing for financial products must be honest, clear and not misleading so that consumers can invest, save or borrow with confidence. Promotions are not just about likes, but also about the law.
We will take action against those who illegally promote financial products. Social media won’t always be the best place to promote complex products. Companies should consider whether a platform that offers limited characters or space is the right place to do this.”
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