Social media is a great place for financial education
Social media is a great place to do financial education, but you need to know what you’re doing, experts say.
They spoke at a PIMFA webinar titled “The Social Media Dilemma: How to Grow Your Business While Staying FCA Compliant”.
One of them, Hearsay Systems, vice president of compliance strategy, Iain Duke-Richardet, said social media has a role to play in financial education.
It could cover topics like planning for retirement, buying a home, or managing your finances.
Claire Khan, Quilter’s Financial Planning Compliance Officer, also observed a request for financial education on Instagram.
On Instagram, she saw people discussing issues such as the benefits of income protection and life insurance.
Yet social media platforms such as Instagram or TikTok are generally known as the preserve of influencers sharing advice on volatile assets such as cryptocurrencies and forex.
As a result, Graham Aikin Consulting founder and CEO Graham Aikin also believes there is a place for advisors in this space.
But he warned advisers need to rethink their approach to social media.
“Advisors need to try to understand where their clients are. If an advisor’s clients are on Facebook, then the advisor should consider a presence on Facebook, ”he said.
Aikin also said that many advisors tend to create profiles on all social media platforms, but they shouldn’t necessarily be.
He said, “They’re asking for the username, but that’s about it.
“They need to be a little more thoughtful about their social media goals.
“Where are the customers, prospects or introducers? “
He added that advisers should also make sure they’re posting the right content for each of the different platforms.
Aikin has also noticed that human and engaging content tends to perform better than corporate posts.
He gave the example of an advisor working for a “well-known” London-based investment manager who performed well on social media.
Aikin said, “It doesn’t publish any corporate content. No financial promotions, products or weekly market updates.
“What he does is produce short, catchy videos of what he does during the week.
“It could be things like meeting with a client to review their pension or to talk about their retirement plan.
“He’s gotten masses of engagement and a number of new clients because of it.
“He’s a long way from financial promotion. It’s just human and engaging content.
“I think this is definitely the way to go.”
Still, there are a number of rules and regulations advisers should consider before engaging on social media.
Khan recommends that advisers pre-record videos before uploading them to social media platforms and keep a separate copy.
She also urged advisers to pay attention to messaging features.
“You should be okay with your financial promotions as long as your answers are clear and not misleading, everything you have said is factual, and you can support the facts you have presented,” she said.
Khan also called on advisers to Googling themselves regularly.
This is because web crawlers can grab information from other websites and potentially manipulate it in an improper manner.
Regarding the use of hashtags, Khan said it is okay to use them as long as they conform to the FCA manual and are not misleading.
Aikin recommends using pre-existing hashtags. He also suggests using three to five.
Aikin added that he was starting to see more and more companies using company-specific hashtags. He said it was a great way for compliance teams to monitor their employees.
The Financial Conduct Authority has reiterated the danger of online investment fraud as the pandemic creates a boon for online criminals.
Its chief law enforcement officer, Mark Steward, told MPs that there has been a significant increase in the level of internet scams since the onset of Covid-19.
The regulator urged the government to tackle online scams through the online security bill.
Earlier this week, MPs accused the government of “failing to act” against paid online ads and of “disagreeing” with the regulator.
The influential select committee on work and pensions said the government had once again dropped the ball on the issue.
In March, he called on the government to “act quickly and decisively” to protect savers report.
The government released its response to the report on pension scams July 6.
In the response, he rejected the committee’s recommendation that the upcoming online safety bill should tackle fraud facilitated by paid advertising, such as search engine ads for retirement products.
Instead, there will be a consultation on online advertising regulation later in the year, he said.
TikTok announced yesterday that it is banning the promotion of financial products and services.
This includes among others cryptocurrency, foreign exchange, but also the management of monetary assets.