“Since we left the EU, this exception doesn't apply and the rule under FSMA that requires financial promotions to be issued or approved by an FCA authorised firm applies to social media companies, as it does to all media companies, and anyone who has communicated a finance promotion.”
He said it was not “immediately apparent” whether social media were really aware of what this change actually meant but they have now been made aware.
“We now have quite a lot of traction with the social media industry to force change,” he added. If firms fail to comply, “we will take action”.
Last month, the government announced measures to tackle some online scams in its latest Online Safety Bill, after an ongoing push from the industry over the past year.
In the Queen’s Speech (May 11), a new version of the Online Safety Bill was introduced to include financial fraud and user-generated online scams but not fraud via advertising, emails or cloned websites.
What do you think about the issues raised by this story? Email us on FTAletters@ft.com to let us know