The FCA has published finalised guidance (FG24/1) to clarify its expectations of firms and others, such as influencers, communicating financial promotions on social media.
Under section 21 of the Financial Services and Markets Act 2000, a person must not, in the course of business, communicate any financial promotion (that is, an invitation or inducement to engage in investment activity) unless the promotion is communicated or approved by an authorised person, or is exempt under the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005.
The guidance (which replaces the FCA's previous guidance in FG15/4) emphasises that financial promotion rules apply across all channels used to advertise, including social media. It also notes that financial promotions must be standalone compliant – i.e. each communication must comply with the FCA's rules when considered individually. The guidance gives examples of compliant and non-compliant social media promotions to indicate the appropriate level of detail required.
The FCA says that firms working with affiliate marketers, such as influencers, should take proactive responsibility for how those affiliates communicate financial promotions (including having appropriate monitoring and oversight systems to ensure that affiliates do not communicate illegal or non‑compliant financial promotions). It also reminds influencers that promoting a financial product without the right approval from an FCA-authorised person could be a criminal offence.
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