The Financial Conduct Authority (FCA) in the UK has issued guidance on promoting financial services through memoranda, scrolls, and game streams, stipulating that social media advertisements must be fair, clear, non-misleading, balanced, and accompanied by appropriate risk warnings to enable individuals to make informed financial decisions.

Social media has become a core component of company marketing strategies. Companies are accountable for all their promotional activities, and the FCA has cautioned them to ensure that influencers they collaborate with convey information to their followers in the right manner.

At the same time, influencers are reminded that promoting financial products without authorization from FCA-approved personnel and obtaining proper licenses may constitute a criminal offense. Consumers need to be wary of suspicious advertisements and online scams, but it's crucial for influencers to ensure compliance with regulations and consider the impact on their reputation if found illegally promoting products.

Lucy Castledine, the FCA's Director of Consumer Investments, stated, "Marketing of any financial product must be fair, clear, and non-misleading for consumers to invest, save, or borrow with confidence. Promotion is not just about attracting attention; it's also about complying with the law. We will take action against those unlawfully selling financial products."

Social media may not always be the best place to promote complex products, as companies need to consider whether platforms with limited characters or space are suitable venues.

FCA scrutiny of financial promotions has intensified. Last year, the FCA removed over 10,000 misleading advertisements, compared to around 8,500 in 2022.