The UK's Financial Conduct Authority (FCA) is becoming more proactive in the online application space.
Following last year's consultation on use of social media, the FCA has completed its review and has now confirmed its approach for financial promotions in social media.
The finalised guidance has been published as FG15/4 - Social Media and Customer Communications: The FCA's Supervisory Approach to Financial Promotions in Social Media.
This covers web sites and applications that enable users to create and share content or participate in social networking, including blogs, microblogs (e.g. Twitter), social and professional networks (e.g. Facebook, LinkedIn, Google+), forums, and image and video-sharing platforms (e.g. YouTube, Instagram, Vine, Pinterest. Any form of communication (including through social media) is capable of being a financial promotion, depending on whether it includes an invitation or inducement to engage in financial activity. So, for example, it would include 'advergames', where promotional messages are placed in entertainment applications.
On another matter, in addition to the document published in July on Considerations for Firms Thinking of Using Third-Party Technology (off-the-shelf) Banking Solutions, legal news blog Out-law.com reports the FCA is examining platforms' technology systems later this year.
The FCA is also consulting on proposed changes to its consumer credit rules and guidance. Almost a year ago on 1st April 2014 the FCA took over the regulation of consumer credit from the former Office of Fair Trading (OFT). This brought around 50,000 consumer credit firms into its scope.
And finally, the UK's new Payment Systems Regulator (PSR), launching next week and part of the FCA, has announced its regulatory framework for payment systems (summary factsheet). Customers of payment services providers may not be aware of this change — Card payment systems is in the 2015/16 programme of work.
Posted on: 27 March 2015 at 08:40 hrs