United Kingdom: Opened consultation on Updated FCA Guidance on Financial Promotions on Social Media

On 17 July 2023, the UK Financial Conduct Authority (FCA) opened a consultation on its draft Guidance on Financial Promotions on Social Media until 11 September 2023. The Guidance aims to protect consumers by reducing the number of illegal and non-compliant financial promotions on social media by clarifying the FCA’s expectations for firms as well as unauthorised persons such as social media influencers, who promote a regulated financial product or service without approval of the FCA. In particular, the consultation focuses on the prominence of required information in social media settings, expectations under the Consumer Duty for social media communications, approach to affiliate marketing, use of shared social media profiles between UK and non-UK entities, and guidance on the financial promotion perimeter.