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HomeLatest NewsBrussels wants investment firms to answer for influencers

Brussels wants investment firms to answer for influencers

Date: March 1, 2024 Time: 22:35:01

The European Commission has proposed this Wednesday that retail investment companies be responsible for advertising that is misleading or obviates the risks inherent in a certain investment made by financial ‘influencers’ (known as ‘finfluencers’) on social networks or through from other third parties that they remunerate or incentivize, in order to protect customers and help them make informed decisions.

This is one of the main novelties of the Brussels plan to reinforce the regulations on retail investments in the European Union and which, if not complied with, contemplates a sanctioning regime that ranges from fines to the withdrawal of the license as the last “nuclear solution”, according to community sources have pointed out.

The goal set by Brussels seeks to rationalize and modernize these, to place the interests of consumers at the center of retail investment and to ensure that retail investors receive the same treatment and protection, regardless of the investment products, channels it is marketing and distribution of their choice.

Companies will thus become responsible for what ‘finfluencers’ declare on social networks and must ensure that these are kept in their publications of relevant information, in addition to identifying risks for investors, instead of responding only to a strategy of marketing . Brussels hopes that, in this way, financial companies that hire the services of a specific ‘finfluencer’ verify and guarantee the adequate checks and balances so that they comply with EU legislation and, if they do not, the consequences will fall on the company.

Companies will also need to keep track of campaigns in case customers raise concerns or complaints with the competent authorities, which will be able to verify the elements of a particular marketing campaign and thus prevent other “dangerous” campaigns in the future.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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