Content such as blogs have become a great avenue for businesses to build up their brands; however, there are regulatory pitfalls which need to be addressed, particularly with mis-selling, according to MirrorWeb.
Blogs and in-house thought pieces are being used more widely by businesses as a way of gaining exposure. Simple google searches around any financial topic will offer hundreds, if not thousands, of articles explaining what it is, issues in the space, potential developments, and much more.
According to the fifth State of Play report from Editions Financial, 61% of businesses already create in-house content and 74% of companies are looking to increase their capabilities.
In a blog post on the challenges of marketing in financial services, MirrorWeb said, “while this gives brands a fantastic opportunity to speak directly with their target demographics, there are risks with this.”
The key concerns for companies are how the products are promoted and marketed to the public, ensuring there is no way a consumer could be mis-sold a product. Earlier in the year, the UK’s Financial Conduct Authority released a letter to CEOs of regulated firms reiterating the responsibilities they have around financial promotions, which can be in any format including websites and social media.
The main takeaway from the letter was a reference to FCA COBS 4.2.1 which states all financial promotions must be fair, clear and not misleading.
Troubles around compliant marketing has been around for a while, with MirrorWeb having previously released an eGuide on delivering personalised content which meets regulatory rules.
With the amount of content set to continue, companies will need to take more steps in ensuring they only release compliant information.
MirrorWeb said, “To create content in-house, many financial services brands are bringing on board professional writers and dedicated marketing staff. A lot of these people will be highly skilled at what they do and understand their market and subject matter perfectly. The risk comes when writers lack the knowledge and understanding of the subject matter they’re writing about, especially when content needs to be created with financial promotions compliance in mind.
“For example, a skilled writer could probably write a high-quality blog on UK equities with ease. However, could they do it in a way that is clear, fair and not misleading?”
To adhere to FCA COBS 4.2.1 companies need the right approval and record-keeping processes to identify risks. The writer will also need to have the knowledge of the topic to ensure they are not mis-promoting things.
Financial services that do create content must cater for all their audiences. This means they need to have material relevant to young customers and similarly, topical content for their long-standing customers.
MirrorWeb said, “Capturing and records of digital communications is a big component of this, along with the ability to audit and approve financial promotions. For example, how will you as a firm ensure website promotions and social media posts are managed from a compliance and regulatory perspective? If questioned, how would you demonstrate that you’re a firm that endorses in ethical conduct, protecting the interests of your customers?
“As digital channels continue to grow and the way firms communicate evolve, compliance requirements will adapt alongside. This is simply part of the regulatory environment that now exists, the fines we’ve seen issued by the regulator demonstrate the expectations for accountability and record-keeping.”
To take full advantage of in-house content, financial services firms just need to ensure they have “highly skilled and knowledgeable content creators, adept and reasonable compliance personnel and the correct systems and controls in place.”
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