The Financial Conduct Authority (FCA) has announced plans to update its guidelines for promoting financial products and services on social media.

For the next eight weeks the regulator, which has been ramping up its scrutiny of online financial promotions, will consult on extending its guidance.

The regulator said it recognises the increase in “finfluencers” and the potential for consumer harm taking place online.

The FCA has also joined forces with the Advertising Standards Authority to help educate consumers and influencers about the risks in promoting financial products.

“We’ve seen a growing number of ads falling short of the guidance we have in place to stop consumer harm,” said Lucy Castledine, director, consumer investments at the FCA. “We want people to stay on the right side of our rules, so we’re updating our guidance to clarify what we expect of firms when marketing financial products online.”

Castledine continued: “And for those touting products illegally, we will be taking action against you.”

The move follows the news that the FCA will impose new rules on crypto advertisers to protect consumers. From 8 October, firms promoting crypto must put in place clear warnings and ensure advertisements are clear, fair and not misleading.

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