Guy Wilkes, a Partner in the Finance and Banking Disputes Group, has commented for Commercial Dispute Resolution on news issued new proposed guidelines regarding the use of social media in advertising issued by The UK’s Financial Conduct Authority (FCA).
The draft guidelines, subject to an eight-week consultation period ending on 11 September, are billed as a "significant step" in the FCA's efforts to prevent illegal and non-compliant financial promotions.
Guy explained: “The guidance is a reminder that FCA financial promotion rules apply to all promotions in whatever medium they take place. Of particular note, is the FCA's comment that in some cases social media may not be an appropriate channel for advertising.
“Social media is a fast-moving medium and can be a difficult arena for firms to control, particularly where third parties such as influencers become involved. It is vital that firms have appropriate policies and procedures in place to ensure all social media is compliant and that agreements with third parties are drafted to protect the firm from regulatory risk.”
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