The European Securities and Markets Authority (ESMA), the EU's financial market regulator, and national competent authorities yesterday (February 6, 2024) issued regulations on the publication of investment advice on social media in accordance with the Market Abuse Regulation. behavior warning.
Authorities have also warned of the risks of market manipulation in such conduct.
ESMA clarifies that under the Market Abuse Regulation, investment advice can be any post, video or any other type of mass media, including social media, in which an individual directly or indirectly provides information on buying or selling financial information. Products or suggestions or ideas on how to form a portfolio of financial products.
ESMA warns: Posting investment advice on social media will be restricted
Authorities have also warned of the risks of market manipulation in such conduct.
ESMA clarifies that under the Market Abuse Regulation, investment advice can be any post, video or any other type of mass media, including social media, in which an individual directly or indirectly provides information on buying or selling financial information. Products or suggestions or ideas on how to form a portfolio of financial products.
ESMA warns: Posting investment advice on social media will be restricted
The European Securities and Markets Authority (ESMA), the EU's financial market regulator, and national competent authorities yesterday (February 6, 2024) issued regulations on the publication of investment advice on social media in accordance with the Market Abuse Regulation. behavior warning.
Authorities have also warned of the risks of market manipulation in such conduct.
ESMA clarifies that under the Market Abuse Regulation, investment advice can be any post, video or any other type of mass media, including social media, in which an individual directly or indirectly provides information on buying or selling financial information. Products or suggestions or ideas on how to form a portfolio of financial products.
ESMA warns: Posting investment advice on social media will be restricted
Key requirements in the market abuse regulations include identifying the person giving the investment advice, including the names and titles of all relevant persons and the date and time the advice was given.
In addition, investment advisers must ensure that investment advice is presented objectively and any conflicts of interest are disclosed in a clear manner.
The regulations require “professionals” and “experts” to disclose, among other things, investment horizons and appropriate risk warnings, as well as how often plans will update their recommendations. If publishers do not comply with relevant requirements, they will be sanctioned.
Administrative or criminal sanctions imposed by competent authorities for certain types of infringement may vary between Member States.
“Transparency and accuracy are key when posting information on social media, especially when providing investment advice. This is why if you are a financial influencer, technology expert or simply someone interested in financial investing, you need to understand the market abuse of regulatory provisions and be able to identify the reasons for investment advice," ESMA noted.
Authorities have also warned of the risks of market manipulation in such conduct.
ESMA clarifies that under the Market Abuse Regulation, investment advice can be any post, video or any other type of mass media, including social media, in which an individual directly or indirectly provides information on buying or selling financial information. Products or suggestions or ideas on how to form a portfolio of financial products.
ESMA warns: Posting investment advice on social media will be restricted
Key requirements in the market abuse regulations include identifying the person giving the investment advice, including the names and titles of all relevant persons and the date and time the advice was given.
In addition, investment advisers must ensure that investment advice is presented objectively and any conflicts of interest are disclosed in a clear manner.
The regulations require “professionals” and “experts” to disclose, among other things, investment horizons and appropriate risk warnings, as well as how often plans will update their recommendations. If publishers do not comply with relevant requirements, they will be sanctioned.
Administrative or criminal sanctions imposed by competent authorities for certain types of infringement may vary between Member States.
“Transparency and accuracy are key when posting information on social media, especially when providing investment advice. This is why if you are a financial influencer, technology expert or simply someone interested in financial investing, you need to understand the market abuse of regulatory provisions and be able to identify the reasons for investment advice," ESMA noted.
