Social Media Promotions: FSA Warnings to Banks

The Financial Services Authority (FSA) has recently carried out a survey looking into how financial services companies correspond with their customers. It has however found that some companies are not complying with industry rules applying to the use of social media channels.

The FSA has now issued a warning to say that banks and other financial services must still apply the rules when using social media and social networking sites such as Facebook, along with phone apps. It has also cautioned that maybe banks should not be using Twitter to communicate at all, according to an article by Pitch Reporters on Mad.co.uk.

Various Twitter and Facebook pages were studied by the FSA who found that some companies were not complying with the rules regarding proper disclaimers and risk warnings. A statement from the FSA includes, ““Some promotions lacked risk warnings. Other promotions, while not very specific about products or services, nevertheless went beyond the definition of ‘image advertising’.” The FSA also said that there were both good and bad practices among companies but warned that it would be looking at all communication channels.

On the subject of whether Twitter is a suitable way for financial companies to communicate at all the FSA said, “For example, Twitter limits the number of characters that can be used, which may be insufficient to provide balanced and sufficient information.” We wonder what you think about financial promotions on social media sites. Maybe you’ve been caught out by not being provided with sufficient information about a financial service? We’d be interested in your comments on this.

Via: Mad.co.uk
Source: Pitch.marketingweek.co.uk