The Financial Conduct Authority (FCA) has today published finalised guidance on financial promotions on social media.
The guidance follows on from recent regulatory changes, such as Consumer Duty, and has put the onus on firms to ensure their social media presence stays the right side of the rules.
“Firms working with affiliate marketers, such as influencers, should take proactive responsibility for how their affiliates communicate financial promotions,” the report said.
The guidance added that firms must take the appropriate steps to ensure influencers are aware of regulatory requirements and understand the product or service they are promoting.
Lucy Castledine, director of consumer investments at the FCA, said: “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,” Castledine said.
“Even when an influencer does not have a commercial relationship with a firm, their communications on social media about financial products or services may still be subject to the financial promotion restriction and require approval to communicate,” the guidance added.
“Influencers are reminded that promoting a financial product without approval from an FCA-authorised person with the right permission could be a criminal offence,” the watchdog said.