On 17 July 2023, the Financial Conduct Authority (FCA) published Guidance Consultation 23/2: Financial promotions on social media (GC23/2), aimed at ensuring firms understand how its rules apply and its expectations for financial promotions on social media.

The FCA notes that it has seen a substantial increase in financial influencers on social media promoting financial products, particularly investment and credit products. Many of these promotions target younger consumers, who are likely to trust the information influencers provide them with.

As such, the FCA wants unauthorised influencers to think carefully before promoting financial products or services and to understand their obligations when advertising through their social media channels.

So that the FCA’s expectations when communicating about financial promotions and services on social media are clear and reflect the current and future social media landscape, the FCA is updating its existing guidance on social media and customers communications (FG15/4). The FCA will be retiring FG15/4 when the new guidance is finalised. The proposals for new social media guidance will modernise the information firms should use when promoting financial products or services online.

The deadline for feedback to this guidance consultation is 11 September 2023.