Financial Promotions & Social Media How to ensure
Description: Financial Promotions Social Media How to ensure compliance CPD 30 minutes The FCA defines a financial promotion as an invitation or inducement to engage in investment activity that is communicated in the course of business.1 Print,
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slide1. Financial Promotions & Social Media How to ensure compliance
CPD 30 minutes<br>
slide3. The FCA defines a financial promotion as ‘an invitation or inducement to engage in investment activity that is communicated in the course of business’.1
Print, online, television and radio adverts
Marketing brochures and literature
Direct mail
Web content
Email Marketing
Social media
Sales aids, such as presentations FCA’s policy on Financial Promotions<br>
slide4. Real Time Financial Promotions
is ‘a financial promotion made in the course of a personal visit, telephone conversation or other interactive dialogue’.
These real-time conversations whether in person, by phone or email cannot be compliance-approved in the same way as published communications.
Non Real Time Financial Promotions Real Time vs Non Real Time Financial Promotions<br>
slide5. Fair, clear & not misleading
Promoted in a balanced way
Provide sufficient information to enable an informed choice
Set realistic expectations – information on past performance needs to be representative and not overly prominent
Treating customers fairly Compliant Financial Promotions<br>
slide6. Unclear statements: the FCA is very keen on clarity. Any claims need to be clear and able to be demonstrated. Acronyms and jargon that may not be obvious to the reader should be explained
Over-optimistic projections of the product in question: anything that could be deemed ’misleading’ in terms of suggested returns will fall foul of the FCA
Disclosure wording that is too small: any ‘small print’ needs to be clearly visible
Unsubstantiated claims about a firm being ‘the largest’ or ‘most successful’ without appropriate evidence
A lack of documented compliance approvals: the process for producing financial promotions can be as important as the finished product. A documented compliance process is essential Fair, clear and not misleading<br>
slide7. Social media share the characteristic of being digital and can be defined as ‘websites and applications that enable users to create and share content or participate in social networking’ (Oxford Dictionaries 2013). The following is a non-exhaustive list:
blogs
microblogs (Twitter)
social networks (Facebook, LinkedIn, Google+)
forums
image and video-sharing platforms (YouTube, Instagram, Vine, Pinterest) FCA’s definition of Social Media<br>
slide8. Each communication via social media needs to comply with the relevant rules on a standalone basis
In character limited platforms such as Twitter extreme caution required to ensure that they don’t require a risk warning
Avoid using #hashtags as they have the potential to confuse the reader Social Media Promotions & Risk Warnings<br>
slide9. The FCA believes that sharing & liking content constitutes a financial promotion
‘…if the customer’s tweet comments on or endorses the benefits of a regulated financial product or service, then sharing or forwarding by the firm will constitute a promotion by the firm’.
Therefore this has implications for those sharing content posted by others.
If some else shares content posted by a firm, the firm remains liable for the compliance of the original post. Clarity on sharing content<br>
slide10. For all Financial Promotions:
Clear audit trail demonstrating that the financial promotion meets the requirement to be fair, clear and not misleading and has been
Reviewed
Approved
Signed off
All financial promotions are to be managed by marketing & compliance
No promotions are to be undertaken by advisers alone Approval and record keeping<br>
CPD 30 minutes<br>
slide3. The FCA defines a financial promotion as ‘an invitation or inducement to engage in investment activity that is communicated in the course of business’.1
Print, online, television and radio adverts
Marketing brochures and literature
Direct mail
Web content
Email Marketing
Social media
Sales aids, such as presentations FCA’s policy on Financial Promotions<br>
slide4. Real Time Financial Promotions
is ‘a financial promotion made in the course of a personal visit, telephone conversation or other interactive dialogue’.
These real-time conversations whether in person, by phone or email cannot be compliance-approved in the same way as published communications.
Non Real Time Financial Promotions Real Time vs Non Real Time Financial Promotions<br>
slide5. Fair, clear & not misleading
Promoted in a balanced way
Provide sufficient information to enable an informed choice
Set realistic expectations – information on past performance needs to be representative and not overly prominent
Treating customers fairly Compliant Financial Promotions<br>
slide6. Unclear statements: the FCA is very keen on clarity. Any claims need to be clear and able to be demonstrated. Acronyms and jargon that may not be obvious to the reader should be explained
Over-optimistic projections of the product in question: anything that could be deemed ’misleading’ in terms of suggested returns will fall foul of the FCA
Disclosure wording that is too small: any ‘small print’ needs to be clearly visible
Unsubstantiated claims about a firm being ‘the largest’ or ‘most successful’ without appropriate evidence
A lack of documented compliance approvals: the process for producing financial promotions can be as important as the finished product. A documented compliance process is essential Fair, clear and not misleading<br>
slide7. Social media share the characteristic of being digital and can be defined as ‘websites and applications that enable users to create and share content or participate in social networking’ (Oxford Dictionaries 2013). The following is a non-exhaustive list:
blogs
microblogs (Twitter)
social networks (Facebook, LinkedIn, Google+)
forums
image and video-sharing platforms (YouTube, Instagram, Vine, Pinterest) FCA’s definition of Social Media<br>
slide8. Each communication via social media needs to comply with the relevant rules on a standalone basis
In character limited platforms such as Twitter extreme caution required to ensure that they don’t require a risk warning
Avoid using #hashtags as they have the potential to confuse the reader Social Media Promotions & Risk Warnings<br>
slide9. The FCA believes that sharing & liking content constitutes a financial promotion
‘…if the customer’s tweet comments on or endorses the benefits of a regulated financial product or service, then sharing or forwarding by the firm will constitute a promotion by the firm’.
Therefore this has implications for those sharing content posted by others.
If some else shares content posted by a firm, the firm remains liable for the compliance of the original post. Clarity on sharing content<br>
slide10. For all Financial Promotions:
Clear audit trail demonstrating that the financial promotion meets the requirement to be fair, clear and not misleading and has been
Reviewed
Approved
Signed off
All financial promotions are to be managed by marketing & compliance
No promotions are to be undertaken by advisers alone Approval and record keeping<br>