FCA ups the ante on social media promotions

The regulator's activity in amending or withdrawing financial promotions is skyrocketing, while draft guidance clarifies and updates its expectations for interactive online channels, reports Adam Strickland.

Adam Strickland is a consultant in the Funds team, with regulatory compliance specialists Bovill (www.bovill.com). Bovill are able to review a firm's policies and governance procedures on financial promotions, carry out compliance monitoring and tests, as well as explain to firms how to adapt to the new guidance and make sure they are ready for implementation.

The consultation period has closed for the Financial Conduct Authority's new guidance on how its financial promotion requirements apply to financial promotions on social media. [1] The regulator has been focusing its attention and energy on financial promotions for some time, and in particular the use of social media. It's not hard to see why - the FCA's own data on financial promotions showed that in 2022 the number of promotions from authorised firms amended or withdrawn by the regulator increased by 1,398 per cent compared to 2021.[2] And it appears that the trend is continuing, with 3,742 promotions from authorised firms amended or withdrawn in the first half of 2023. [3]