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The FSA is watching you
In the Financial Services Authority’s (FSA) latest review of new media, the FSA found that some financial promotions lacked risk warnings.
The FSA warns the financial sector that it is monitoring the use of new media such as social networking sites and forums and will take action where appropriate.
During 1-5 February 2010, the FSA conducted a review of approximately 30 Twitter and Facebook pages using different search terms within the financial sector. It looked at pages containing a wide range of promotions from both small and larger firms that offered a wide range of products including financial advice and investments.
The FSA has identified good and bad practice among firms who use new media to communicate financial promotions.
Some promotions, while not very specific about products or services, went beyond ‘image advertising’ which would only include the name of the firm, a logo, a contact point and a reference to the types of regulated activities provided by the firm or to its fees or commissions.
In its report, the FSA said: "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. Promotions and communications made using new media must meet the requirements for stand-alone compliance."
