The FSA has warned firms must comply with financial promotion rules when using new media such as Twitter, Facebook, online forums, blogs and mobile applications…
FSA warns Facebook and Twitter pages must be compliant
The FSA has warned firms must comply with financial promotion rules when using new media such as Twitter, Facebook, online forums, blogs and mobile applications.
In an industry update, the regulator says some new media promotions it reviewed lacked risk warnings and did not comply with financial promotion rules.
The FSA says “image advertisements” should consist only of a firms’ name, a logo or other image associated with the firm, a contact point and a reference to the types of regulated activities provided by the firm, its fees or commissions.
Any communication that goes beyond that definition must comply with the financial promotion rules.
The FSA says: “Where our rules apply, they generally apply in a way that is media-neutral, and they focus on the content of the financial promotion rather than the medium used to communicate it.
“Therefore, applying the rules to financial promotions made using new media is no different to financial promotions made using any other medium.”
The FSA says in February it reviewed 30 Twitter and Facebook pages and online forums and found good and poor practice amongst firms.
It says: “Some promotions lacked risk warnings. Other promotions, while not very specific about products or services, nevertheless went beyond the definition of image advertising. Firms may not have considered these factors to meet the definition of a financial promotion and therefore have not applied the relevant communication rules.”
The regulator recommends that firms regularly review their new media promotions, consider whether the channel is suitable and whether risk information could be displayed prominently and clearly.