The regulator expressed its awareness in the increase of firms using digital media for customer communications, especially financial promotions, but wished to ensure firms adhered to an overarching principle that any communication should be fair, clear and not misleading.
While the FCA has made clear that it does not wish to curb the use of social media, it has suggested that firms make clear when they are advertising using social media platforms - for example, using the hashtag #ad on Twitter.
Clive Adamson, Director of Supervision at the FCA said:
“The FCA sees positive benefits from using social media but there has to be an element of compliance. Primarily, what firms do on social media must ensure customers are at the heart of their business.
“Our overall approach is that financial promotions, whether on social media or traditional media, should be fair, clear and not misleading. We have had extensive industry engagement on this issue and we believe our guidance is a sensible approach that doesn’t affect industry’s ability to innovate using new forms of media. We recognise social media are constantly evolving. We, therefore, welcome feedback to today’s consultation and look forward to continuing the discussion with industry.”
