Context
The FCA has published a finalised guidance document (FG24/1) on how financial promotions should be communicated through social media.
Financial promotions on all advertising channels should be fair, clear and not misleading, and support consumer understanding. The FCA wants 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.
Key points to note and next actions
This Guidance replaces the FCA’s old Guidance on this topic (FG15/4) and clarifies the FCA’s expectations for how financial promotions should be communicated on newer forms of social media, like short-form video and carousel posts. It also provides guidance on how recent rule changes, including Consumer Duty, apply to promotions on social media. Additional guidance is included for influencers and other affiliate marketers, on the regulatory perimeter to help them understand when a communication on social media is likely to be subject to the financial promotion restriction and how the FCA’s rules apply.
Alongside the Guidance, the FCA has also published a statement on the feedback it received to the consultation last year (GC23/2).
The FCA’s scrutiny of financial promotions has been ramped up recently, with the FCA removing over 10,000 misleading adverts last year, up from around 8,500 in 2022.