The Use of Memes in Financial Services Marketing

The Financial Conduct Authority in Britain has recently issued guidelines for financial services companies and social media influencers regarding the use of memes in marketing financial products. According to the FCA, any marketing materials, including memes, should be fair, clear, and not misleading. This move comes as a response to a rise in scams related to cryptocurrency and other investments being promoted through memes on social media platforms.

The FCA stated that financial social media influencers, also known as “finfluencers,” must obtain approval from an FCA-appointed representative before publishing advertisements and memes about financial products and services. The director of consumer investments at the FCA, Lucy Castledine, emphasized the importance of abiding by the law when promoting financial products. She highlighted the need for ensuring that promotions are not misleading and do not take advantage of social media platforms’ limited characters or space.

The FCA reported that over 10,000 misleading adverts about financial services were taken down in 2022. The regulator specifically pointed out the prevalence of memes in promoting investments within the cryptocurrency industry. Platforms like Telegram and Reddit are popular places where crypto memes are widely circulated. The FCA warned users of chatrooms and forums that financial promotions using memes are still subject to regulatory rules and must comply with the guidelines set forth by the authority.

The FCA’s crackdown on financial scams has intensified, especially with the sharp increase in fraudulent activities during the Covid-19 pandemic. As more consumers shifted to online platforms for their financial transactions, scammers took advantage of the situation. The FCA has been particularly vigilant in monitoring crypto advertising and has implemented stricter regulations for firms promoting consumer crypto investing in the U.K. Starting in October 2023, firms must be authorized or registered with the FCA or have their marketing materials approved by an authorized firm before promoting crypto investments to consumers.

The FCA’s guidelines on the use of memes in financial services marketing aim to protect consumers from falling victim to scams and misleading information. By ensuring that promotions are fair, clear, and compliant with regulatory standards, financial services companies and social media influencers can contribute to a safer and more transparent investing environment.