FCA Guidance On Financial Promotions On Social Media

The UK’s Financial Conduct Authority (FCA) has published a guidance on using social media for financial promotions.

The FCA made it clear that they understand the power of social media as a communication tool and the benefit it can have for both firms and their customers. It also emphasised that any communications via social media had to meet the FCA’s requirements of being, among other things, “fair, clear and not misleading” in exactly the same way as traditional media.

The guidance is a reminder that any communication, also on social media, is likely to be deemed a financial promotion if it includes any invitation or inducement to engage in financial activity. One of the challenges provided by social media, as opposed to the more traditional forms of communication, is that of controlling who receives any promotion.