Character limits on tweets no defence for non-compliance warns FCA

FIRMS cannot use the 140-character limit of tweets as a defence for not complying with the rules that govern financial promotions, new guidance from the Financial Conduct Authority (FCA) has confirmed.

It said platforms like Twitter, which limit the number of characters that can be used in a message, might not be appropriate to promote complex features of financial products or services.

While acknowledging the power and value of social media, the FCA has made it clear that the often informal and bitesize nature does not put it outside of the requirements on communications.

Tracey McDermott, FCA’s director of supervision and authorisations, said: “Social media is already an important tool for industry to engage with customers and its use is only set to grow.

“Financial promotions, whether on social media or traditional media, must give customers the right information and meet our requirements to be fair, clear and not misleading.”

The guidance seeks to remind firms that any form of communication is capable of being a financial promotion if it includes an invitation or inducement to engage in financial activity.

In particular, it warns that communications must remain fair, clear and not misleading, even if it ends up in front of a non-intended recipient through, for example, others retweeting on Twitter or sharing on Facebook.

Ms McDermott added: “We believe this guidance reflects a sensible approach that allows the industry to innovate using new forms of media and at the same time ensures customers get the right level of protection.”

The FCA’s guidance, which has been subject to consultation with the industry, provides examples of areas that firms need to be wary of. They include the need to provide risk warnings or other statements in each promotion and the requirement to make sure each communication – including single tweets or Facebook posts – are individually compliant.