Regulation  

Don’t be a retweet twit on products

Don’t be a retweet twit on products

Advisers should avoid retweeting product recommendations, Stephen Hagues has said.

The founder of Retiring IFA was speaking after the FCA released its guidance on the use of social media by financial services firms and their employees.

Mr Hagues said: “Re-tweeting communication from clients on the service offered, rather than product recommendations, is far more effective in terms of attracting new clients to your business.

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“Therefore, best practice would not involve retweeting such communications about product recommendations in the first place.”

According to the FCA’s new rules, tweets will be considered as a standalone promotion, even when they are used to link to a website.

Mr Hagues said: “The rules outlined in the FCA paper and the character limitation of Twitter will make it difficult for communication falling under the rules to be compliant and effective.”

Adviser view

Simon Mansell, director of Worcestershire-based Temple Bar Independent Financial Advice, said: “The problem with any form of electronic communication is that it is instant and can be rapidly broadcast to a significant number of people, which multiplies the potential for significant risk.

“It then becomes sanitised because we are trying to avoid restrictions and the recipient, or client, is almost forgotten.”