Long Overdue FCA Policy Renewal On The Table
Financial Sector May Finally Have Chance To Engage With Social Media
The Financial Conduct Authority (FCA) is expected to release new guidelines concerning financial sector marketing on social media next month, following pressure at the Social Media Leadership Forum (SMLF) held recently in London.At the SMLF, London’s major financial players expressed their reluctance to invest in British social media marketing due to antiquated and unclear regulations which, if not adhered to, could result in a fine being administered to those firms who do fall foul of existing rules.
The penalties for not complying with FCA regulations can be hefty; last month Credit Swisse was fined almost £1.5 million for failing to ensure that a promotion was clear, fair, and not misleading. The sector’s reluctance to integrate social media more heavily into their marketing schematic is, therefore, understandable, considering the difficulty in operating on modern social media platforms while adhering to rules which were written at a time when MySpace was still the third most visited site by those under 18.
Considering David Cameron’s recent lauding of the virtues of the new digital economy, including a £50 million investment by the government in a new building on East London’s ‘Silicon Roundabout,’ it seems absurd that the industry which contributes 2.4% of Britain’s GDP and which has its global centre in London is restricted from fully representing itself on social media – a platform which has an annual growth rate of almost 75%.
Douglas is an English Literature graduate who has written about everything from music to food to theatre, now a content creator for Social Media Frontiers. No topic too large or too small. Follow him @DouglasAtSMF.
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Long Overdue FCA Policy Renewal On The Table
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Tuesday, July 29, 2014
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