Social media can be a highly effective way to market online. It provides businesses in many industries with a good way to build relationships, increase trust, and win more business.
But if you operate in the financial industry, there is something you will need to consider carefully: compliance.
Essentially, you have to be careful about what you say and publish on social media in the same way as you have to be careful with any form of communication.
There are rules and regulations that you have to follow regarding what you can do on social media, and the FCA has some published guidelines for social media promotions.
They are all designed to help prevent the publication of erroneous financial advice, and they are for the benefit of everyone. Here are some of the main factors to keep in mind.
Be careful what you tweet
When it comes to social media marketing and compliance, one of your tweets or social media updates must comply with the rules set out by the FCA.
Crucially, they should not be misleading, and they should always be fair. Confusion may arise when you link to another website through a social update, but the same rules apply.
If you have a financial promotion for credit or mortgages, you must include a representative example in the advert if referring to credit costs or the interest rates. Also be careful about using any unsolicited promotions because the same rules apply for social media as for any other channel.
And remember that updates such as tweets are not just seen as the start of the promotion, but they are seen as promotions in their own right.
Risk warnings should be included in your social media posts, as well as any other required statements when promoting certain products. These apply to social media in the same way as other mediums.
Be careful what you retweet
Retweets can cause further confusion. The FCA has made it clear that if you create a communication, and it is retweeted, the communicator has responsibility rather than the firm. But the original communication must not breach the rules of compliance.
Sharing something or even liking something on Facebook can be seen as an invitation, such as when you share a consumer’s recommendation about a particular loan, so always be very careful.
Have a sign-off system in place
It’s also important that you have a good sign-off system in place. Ensure that someone senior in the firm has responsibility for signing-off your tweets, updates and other social media activity, as recommended by the FCA.
Be careful what you post on social media
Avoid compliance problems with social media. Although social media can be an effective marketing and communications tool, you must ensure you remain compliant. Always check the FCA guidelines in detail if you are unsure about your social media communications.
