Many of the messages sent or ‘posted’ in batches to customers or potential customers are unlikely to amount to personal recommendations, the Financial Conduct Authority claims in guidance published today (11 July).
But to assess whether a ‘message’ sent to several customers amounts to a personal recommendation, the FCA stated different factors need to be taken into account, for example, the target audience and the content of the message.
The way the firm selects the customers to whom the message will be sent can have a bearing on whether the ‘message’ constitutes a personal recommendation, according to the watchdog.
For example, when the internal procedures of a firm specify that a financial instrument may only be sold to a sample of customers selected on the basis of certain factors, such as customers under a certain age or who hold similar products, then the FCA stated the selection of the target audience will not automatically mean the firm is providing personal recommendations.
However, highlighting the particular personal circumstances that led the individual to be contacted, for example, is very likely to mean the product is being presented as suitable for the particular customer, the FCA argued.
Content of the ‘message’ is also key, according to the regulator.
If the context, tone and language of the message, amounts to a recommendation, for example, because it contains a solicitation, an opinion or a judgement about the advisability of a transaction, the FCA could judge your Tweets as being personal recommendations.
