Bovill social media regulation workshop UKCFA Dec 14
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Transcript of Bovill social media regulation workshop UKCFA Dec 14
On the FCA’s radar
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What is a financial promotion?
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“Any invitation or inducement to engage in investment activity
when communicated in the course of business.”s21 FSMA
everything from asking to
persuading
obtaining some form of commercial
interest, whether direct or indirect
investing in a pitch to using
your platform’s services
More than factual information but context is key
The 3 questions
For fin proms generally:Applicable rules depend on the answer to these questions
Whether your firm creates, presents or passes on the
financial promotion you are responsible.
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• What are you marketing?
• e.g. shares, funds, loansWhat?
• Who are you marketing to?
• e.g. general public, limited groupWho?
• How are you communicating?
• e.g. Twitter, direct offer, prospectusHow?
Tweeting the world
Tweet, post, ad or webpage?
Assume anyone can see it…
…therefore retail rules apply
• Prominent risks
• Performance
• Balance
• Tax
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Fair, clear and not misleading
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= the backbone of all the communications rules
Everything must be upfront, clear & complete
Applies to all communications
including non-promotional social media
Limited characters?
May not be the right forum
Ability to share / retweet?
How will the post
come across out of context
The standalone compliance challenge
Consultation maintained this position…
No reliance on landing pages but:
• #ad
(doesn’t replace risk warning)
• using images (but make sure risks cannot be hidden)
(& don’t confuse this with “image advertising”)
• factual signposting7
"If you can't make the promotion compliant within the
allocated space, you can't advertise“ Clive Gordon, Head of Conduct Risk, FCA, 2012
Top tips
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1. Keeping promotions high level = less risk info needed to balance out.
2. Putting promotion & risk in image so if one is lost, both are
3. Retweeting controls – rules apply to retweeting as well as firm posts
4. Ensure promotions are standalone
5. Keep own records
Questions
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