FSA warns Facebook and Twitter pages must be compliant
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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.
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Readers' comments (28)
Anonymous | 22 Jun 2010 10:42 am
It must be so nice to be on a £100,000 salary & have nothing better to do!
Most finance people dont understand all the caveats & APR's let alone consumers... Keep up the good work
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Anonymous | 22 Jun 2010 10:44 am
I suppose the FSA will now look to raise revenue by way of fines from individuals next, what a bunch of t*****s the FSA are!!!!!!!!!!!!!!!!!! Hurry up and close them down!!!!!!!!!!!!
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Anonymous | 22 Jun 2010 10:48 am
Typical, the economy is melting down around around our ears and the main cause of the disaster, (who fell asleep on their watch) is focussed on beating up a Facebook user and wittering on about a twitter page .
Why worry obout the insane rantings of a soon to be defunct basketcase,
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Martyn Sinclair | 22 Jun 2010 10:49 am
I would suggest that the arm of the FSA reaches out to Bill Gates & Co - perhaps we will see FSA approved versions of windows. DOes FInancial Promotions extend to special offers for rebated at McDonalds, perhaps the favoured food fo the FSA. We could all be wearing FSA approved suits from M & S once their financial promotions have been readily approved. In fact, if the FSA became a public company and issued shares on the worlds exchanges, this could bring a new meaning to insider dealing..................!!!
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Anonymous | 22 Jun 2010 10:51 am
LOL 140 characters allowed - not 9,000,000 words!
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William Kingsley | 22 Jun 2010 10:55 am
Better check all my post-it notes are compliant too
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PensionMan | 22 Jun 2010 10:57 am
The guys at Canary Wharf must be really, really bored!
Get a grip FSA and do something useful for a change!
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Anonymous | 22 Jun 2010 11:11 am
Interesting article. Twitter, Facebook and online forums are normally used casually, for timewasting, or for social purposes. In business they can help keep you 'front of mind', or with the exchange of opinion or points users consider helpful. Are they really used for financial promotions? What client would consider a tweet legally binding?
Then there's enforcement, does the FSA have resources to spare to sift through mountains of chatter in the hope of finding something incriminating? Or the resources to dispute the technical side of things when the offender simply deletes the problem posting?
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Anonymous | 22 Jun 2010 11:14 am
Perhaps the warning should be something like “The Financial Services Authority is run by an obscene number of grossly overpaid, bumbling idiots and will damage your wealth” It has cost you 3.5 Billion pounds to date and counting.
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Anonymous | 22 Jun 2010 11:18 am
Pathetic.
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