Scores of responses have been sent to the Financial Conduct Authority regarding proposals to prevent misleading financial promotions through social media services such as Twitter.

The FCA set out new plans earlier this year to crackdown on misuse of such sites. A consultation ended last week and the regulator has told Financial Planner online that it received 63 official responses. The final guidance, which will be composed in the light of this feedback, is not set to be published imminently, the FCA said.

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Officials said the views on its proposals still have to be read, sorted, considered and responded to before they are firmed up and set out. There is no date set as yet for publication of the final document.
The FCA said it "recognises that social media particularly are powerful channels of communication" and "does not want to prevent their use".
But it has reminded firms that any form of communication is capable of being a financial promotion, depending on whether it includes an invitation or inducement to engage in financial activity.
London-based PR consultancy MRM has expressed concerns over the proposals, telling the FCA in an official response that they would create an "unrealistic" burden for agencies when "running fast paced social media campaigns on behalf of a client".
This relates to the suggestion that clients should be obliged to sign-off social media posts drafted on their behalf. The FCA said "a person of appropriate competence and seniority" within regulated businesses should have the last word on all posts on Facebook, Twitter and other social media platforms – even though they might have been written by a PR or digital agency.
Havard Hughes, MRM's head of public affairs, said: "Our only major area of concern is the lack of clarification regarding the sign-off of communications where firms use external agencies.
"Increasingly firms are turning to agencies to generate and manage their digital presence. Therefore, if the rules are to have any longevity this is an area that needs further clarification.
"We believe that the guidance should recognise the relationship between a firm and its social media client and that firms should be able to agree to a campaign in a campaign plan or strategy and that this should be sufficient for the regulator."
Michael Taggart, MRM's head of digital and social, said: "We'd like to see clearer definitions of what constitutes personal use, as opposed to business use."
The agency welcomed proposals to require risk warnings and the #ad hashtag in financial promotions. It also praised proposals that communications have to be stand-alone compliant.

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