Some of today’s newspapers carried reports that the UK’s Financial Conduct Authority (FCA) is about to crack down on the way some peer-to-peer lending platforms advertise their services, and the lending opportunities they offer. It’s been suggested that some advertisements may have exaggerated the benefits of peer-to-peer lending, and the security of peer-to-peer lending transactions in particular.
If the FCA is about to crack down on each of these things, it seems likely that it will be in connection with
actual or potential breaches of the UK’s financial promotions rules, as they apply to social media ads.
If that’s right, we can probably also expect the FCA’s Feedback Statement, and its responses to the feedback it received, in connection with “Guidance Consultation 14/6 Social Media and Customer Communications: The FCA’s supervisory approach to financial promotions in social media“.
Each of these things will be significant for peer-to-peer lending platforms, crowd funding platforms, and other firms that use social media to advertise financial services and products. Our updated and more substantive blog will follow shortly after the FCA publishes its findings and conclusions (if, or course, it does!) In the meantime, our Client Alert on the UK’s financial promotions regime is here.