Britain’s financial regulatory body issued guidelines on Tuesday to combat misleading advertisements on social media, cautioning "influencers" that endorsing financial products

without regulatory approval could constitute a criminal offense.

The Financial Conduct Authority outlined requirements for advertisements to uphold fairness, clarity, and accuracy, emphasizing the inclusion of risk warnings as social media increasingly serves as a pivotal component of marketing strategies.

Influencers, individuals compensated for promoting products on social media, are obligated to obtain approval for their advertisements to avoid potential criminal liability, the FCA emphasized.

"While consumers must remain vigilant against deceptive adverts and online scams, influencers must ensure compliance with regulations and consider the implications for their own reputations should they unlawfully promote products," stated the Financial Conduct Authority.

Additionally, the FCA cautioned financial institutions, advising them to assess whether platforms with character or space constraints are suitable for promoting complex products.

The scrutiny of financial promotions has intensified, with the regulator disclosing the removal of over 10,000 misleading adverts in the past year, an increase from approximately 8,500 in 2022. Photo by Ed6767, Wikimedia commons.