Financial firms looking to keep in touch with customers through social media will have to follow a strict set of rules laid down by City regulators.
The Financial Conduct Authority (FCA) has issued a strict set of guidelines demanding any online contact with prospective consumers must be fair, clear and not misleading.
For financial firms, this means spontaneous replies to online messages in forums or on social networks must also include risk warnings, which means many text-limited platforms like Twitter (140 characters) and texts (160 characters) may disappear.
Tracey McDermott, the FCA director of supervision and authorisations said: “Social media is a vital tool for financial firms, but the same rules must be followed for online communication as in any other media.
“The guidance has come about after extensive consultation with the industry and we believe that it reflects a fair balance for firms and protects customers.”
One specific cause of concern for financial regulators has been pension liberation firms sending out millions of cold-call text to mobile phones promoting dodgy pension schemes.
Warnings about bogus advisers – Worldwide
Here are the latest rogue financial firm warnings on the International Organisation of Securities Commissions web site:
- Southeast Asia Traders – Denmark
- Fife Hamilton Associates – Belgium
- European Commodities Commission – Belgium
- ATI International Financial Group/ATI Associates Ltd – Switzerland
- AAC Ventures Limited – Canada
- Peritus Capital Inc – The Netherlands
- Autorité des marchés financiers – Canada
- General Business Capital AG – Austria
- Max Easy Credit – Austria
- International Trade Management – Austria
- NetCFD/Centaure Capital Partners – The Netherlands
- UK Options – Canada
- Titan Trade Capital Limited – Canada
- Options Area Inc – Canada
- Hawk Trade, Saito Mergers & Acquisitions, White-Miller Associates and Global Strategy Capital Markets Ltd – Belgium
Warnings about bogus advisers – UK
Here are the latest bogus financial advisers listed on the Financial Conduct Authority (FCA) web site:
- Kucher Partners
- Oakbrook Finance Limited (clone web site)
- A One Loans
- Chartis Mutual Group
- moneysolutions.uk.com (clone web site)
- British Debt Advice
- Green Oak Financial (clone)
- Verbatim Asset Management plc (clone web site)
- Bank Invest Capital/GME Ltd
Dealing with an unregulated firm
If you buy shares, save money or invest with an unregulated firm, you lose any protection offered by the Financial Ombudsman and the Financial Services Compensation Scheme. Broadly, you have no independent place to complain if the deal goes wrong and are unlikely to win any compensation.
Checking if a firm is regulated
Go to the Financial Services Register to check if a firm is regulated in the UK.
Reporting a suspected bogus adviser
Find out how to report unauthorised advisers on the FCA web site
