Staying onside of the FCA – financial promotions in social media

  • “Financial promotions, whether on social media or traditional media, must give customers the right information and meet our requirements to be fair, clear and not misleading,” FCA director of supervision and authorisations, Tracey McDermott.

    social_media_facebook_twitter.jpg

    The FCA has recently released guidance on the appropriate use of social media for financial promotions. The clear and continuously hammered home message from the regulator was that a financial promotion must be ‘fair, clear and not misleading’.

    So what exactly does ‘fair, clear and not misleading’ entail when it comes to promoting your financial products on social media?

    Here are the main take-outs from the 20-page document:

    • Financial promotions for certain products or services must come with a risk warning or be made clear that it is a promotion in the message, regardless of character limits. Therefore, tweets, which have a character limit of 140, still need to carry the adequate information to remain compliant. The FCA is aware of the limitations faced by the character restrictions, and has recommended the use of images, which carry the risk warning. However, it is possible that users can turn off images from being permanently visible. In this case, the FCA has said that the tweet still needs to carry the risk warning.
    • Don’t over emphasise your offering -  The FCA made it clear last year that ‘invitation or inducement in financial activity’ is prohibited without a risk warning. For example: “To see our current P2P loans, click here:” is compliant. However, ““To see our great P2P investment opportunities, click here:” is non-compliant. The use of the word ‘great’ introduces an element of inducement that creates a promotion.
    • Early guidance last year allowed for the use of ‘#ad’ to acknowledge a financial promotion. The FCA has now said, “Hashtags are not an appropriate way to identify promotional content. “ Firstly, paid ads are already bundled with the ‘sponsored’ or ‘promotion’ label, and secondly, ‘#ad’ doesn’t adequately cover the risk warnings needed.
    • Retweets are your tweets - By retweeting a message that carries a financial promotion it in turn becomes your responsibility and falls into the same requirements as above. Also, tweets or messages on other social networks from employees of the firm carrying a financial promotion, may also be judged as yours!
    • Sign-off and record-keeping - The FCA reminds firms of their obligations to have an adequate system in place to sign off digital media communications and to keep records of all digital communications. This may be required later on!

    The main consideration when promoting on social media is to stay factual. If you keep to the facts and make sure potential customers are aware of any risks, then you cannot go too wrong.

    It is important to note that the above is not a full list and we would recommend that anyone affected by the above reads the full guidance documentation on social media promotions before promoting a financial product or service on social media.

    If you need help with anything mentioned in this blog post, or want to promote your financial product or service on social media, please get in touch.

Related articles

  • Read More

    Bank Referral Scheme - is 3% success, success?

    We suspected that the Bank Referral Scheme was going to be a slow starter when, five months ago, The Marketing Eye asked the Treasury’s Press Office how it was getting on. Despite the fact that no...

  • Read More

    Peer-to-peer lenders should not fear APRs

    Following the Competition and Markets Authority's (CMA) announcement that the new pricing rules on business loans will not apply to peer-to-peer lenders, some are heaving a hefty sigh of relief,...

  • Read More

    Peer-to-Peer lending passes £10 billion mark

    Peer-to-peer lending has reached a significant milestone since Zopa launched the world’s first P2P platform in 2005. Over £10 billion has been cumulatively lent across 23 UK P2P platforms....

  • Read More

    Peer to Peer featured in Queen's birthday honours

    Good to hear that the pre-eminent pioneers of P2P lending in the UK are receiving formal recognition for their outstanding achievements. Described an a ‘Peer to Peer and Financial Inclusion...

  • Read More

    New Fintech Collaboration: Xero + Liberis

    Liberis, the card based finance provider, has announced an integration with Xero, the UK's leading online accounting software, to improve small businesses’ access to capital and credit....

  • Read More

    Consumer debt rises while businesses save

    Soaring levels of consumer debt are evidently causing the Bank of England, the Government and others in authority some sleepless nights. According to a recent report in The Guardian, the number of...

  • Read More

    Liberis and Sage launch Sage Pay Business Finance

    Sage Pay has teamed up with alternative business finance provider, Liberis,to give Sage customers access to flexible financing for the first time....

  • Read More

    ArchOver receives FCA authorization

    ArchOver, one of The Marketing Eye’s longest standing clients in the alternative finance sector, has been granted full authorisation by the Financial Conduct Authority (FCA). The news represents a...

  • Read More

    Australian Budget sets scene for FinTech growth

    The latest Budget statement from ‘down under’, on May 9, reaffirmed the Australian Government’s intention to turn the continent into a global fintech centre....

  • Read More

    FinTech as a force for good

    Kids, they say, grow up quickly and nowhere is this more true than in FinTech. Barely five years ago, the phrase wasn’t even invented. Now it is the collective noun for billion dollar enterprises,...

Take the first step

To find out more about how we can help you grow faster, please get in touch. We'd like to hear from you.  Or try our instant marketing healthcheck, it's free!

Quick Contact

Quick contact

Close

Contact us

T 01825 765617

E hello@themarketingeye.com

Our offices

Full details of our offices in London and Uckfield more

Request a call

Close