The European Securities and Markets Authority (ESMA) and national authorities across the European Union have announced that they are raising awareness of the Market Manipulation Regulation (MAR) provisions that apply to the posting of investment advice on social media.。

Regulators also warn of risks of market manipulation on social media。

Transparency and accuracy are crucial when publishing investment advice on social media, especially when it comes to advising on investments。Therefore, if you are an opinion leader in the financial sector, a technologist, or just someone interested in financial investing, you need to understand the rules established under the MAR framework and be able to identify investment proposals。

What is Investment Advice?？

Under MAR rules, investment advice can be any post, video, or other type of public information, including social media, in which a person directly or indirectly provides advice or ideas on buying or selling a financial instrument, or how to build a portfolio of financial instruments.。

Even if a person uses "non-technical" language to directly or indirectly provide advice or ideas about buying or selling financial instruments, or how to structure a portfolio of financial instruments, it may constitute investment advice。

Where are the rules?？

The MAR framework consists of the Regulation No 596-2014 and related commissioning and enforcement regulations。

What are the specific requirements？

General requirements include:

• Include identification of the producer of the investment proposal: names, job titles of all involved, and date and time of the proposal。
• Ensuring objective presentation of investment advice: clearly distinguishing facts from explanations, estimates and opinions。Ensure all information comes from reliable sources and clearly indicate when in doubt。
• clearly disclose any conflict of interest so that investors can notice。Each channel must disclose an interest or conflict of interest when posting advice through different social media channels。

Additional requirements include requiring "professionals" and "experts" to disclose:

• Summary of valuation / methodology and underlying assumptions used。
• Length of investment and appropriate risk warnings。
• Recommended updated schedule frequency。
• If the recommendation is modified after disclosure to the issuer。
• If they hold a net long or short position in excess of 0% of the issuer's total issued share capital.5%。

What happens if you don't comply？

You will face penalties。National authorities may impose administrative or criminal penalties for certain types of violations, which vary according to the member State。