The UK’s Financial Conduct Authority (FCA) has issued new guidelines for influencers and memes that promote financial products.
What’s Changing?
Influencers may now need approval from an FCA-authorized person before promoting financial products, including through memes.
Why the Change?
The FCA aims to combat fraud and ensure that social media promotions are “fair, clear, and not misleading.”
FCA’s Warning
Firms are responsible for all their promotions, and the FCA warns that they must ensure influencers communicate accurately to their followers.
Director’s Statement
Lucy Castledine, FCA Director of Consumer Investments, said that over 10,000 misleading advertisements were removed in 2023.
Considerations for Firms
Firms should consider whether social media platforms with limited space are suitable for promoting complex financial products.
