UK Watchdog Clarifies Rules for Memes and Finfluencers in Social Media Promotions

cryptonews.com:

The UK’s Financial Conduct Authority (FCA) on Tuesday issued new guidelines for financial services promotions on social media. These apply to formats like memes, reels, and gaming streams, highlighting the need for fairness and avoiding any misleading information.

In a press release, the regulator said that companies are responsible for all their promotional content, including that created by influencers.

Promoting a financial product without the requisite authorization from a duly qualified FCA-authorized person constitutes a potential criminal offense, it warned.

“Consumers need to be alert to dubious adverts and scams online, but it is important that influencers ensure they’re on the right side of the rules and consider what would happen to their own reputations if they’re found to promote products illegally,” the watchdog said.

Whether it’s a meme, reel or TikTok, firms are responsible for all their promotions, even if they’re working with influencers. Read more about our new finalised guidance on financial promotions on social media: https://t.co/N6ipxZ34Rp #FinancialPromotions #FinancialServices pic.twitter.com/vjfn2evrHP

— Financial Conduct Authority (@TheFCA) March 26, 2024

“Promotions aren’t just about the likes, they’re about the law,” said Lucy Castledine, director of consumer investments at the FCA. “We will take action against those touting financial products illegally.”

The financial regulator has intensified its oversight of financial promotions. Last year, it removed a higher number of misleading advertisements compared to 2022.

This increased scrutiny follows the implementation of stricter rules for advertising high-risk investments, including crypto. In July 2023, the FCA issued specific guidelines on how