FCA Social Media Consultation

Following extensive conversations over the last 18 months, the Financial Conduct Authority (FCA) has launched a consultation to clarify its position in relation to financial promotions on social media. The consultation seeks to inform the approach that firms should take when using social media for financial promotions.

The FCA has noted the increased use of social media, its benefits and the pitfalls of which firms should be aware. Firms are using social media to communicate with customers and for financial promotions. However, this often creates challenges for them when adhering to FCA rules. Firms must remember that any form of communication is capable of being a financial promotion if it involves an invitation or inducement to engage in financial activity.