Hundreds of thousands of pounds in fines have been meted out by the UK authorities since 2010 due to digital marketing compliance failures.
London (PRWEB UK) 28 February 2013
Compliance is one of the biggest hindrances to financial services firms conquering the world of digital media. However, with creative and compliant oversight of a marketing campaign, anything can be achieved. That was the message of this month’s ProFundCom webinar, hosted by financial technology expert Paul Das, founder of ProFundCom, and compliance doctor Lee Werrell, managing director of CEI.
Hundreds of thousands of pounds in fines have been meted out by the UK authorities since 2010 due to digital marketing compliance failures. Part of the problem, according to Das, is that the right questions aren’t being asked internally when it comes to email marketing.
He recommended that financial services firms hit the following points in their internal review process:
- Data retention
- Hosting environment
- System security
Email systems need to show consideration for compliance in finance, and compliance has to be implemented internally, he said.
When it comes to social media, Werrell addressed the following concerns raised in the webinar:
1) Keep it up-to-date. Digital and social media can be stored for a lot longer than traditional print and so need to be updated regularly to ensure content is up-to-date.
Participants revealed worries about product information listed in blogs, and what to do as such information becomes out of date.
If a product promoted in a blog becomes unavailable or unsuitable, that post should be removed, said Werrell. Likewise, a blog containing a link to a document promoting a product needs to contain full disclosure and risk warnings visible within the blog post itself – not just the linked document – otherwise it does not count as “standalone compliant”.
2) Focus on the content of financial promotions.
Participants were also concerned about upcoming changes to the way financial services are regulated. However, there are currently no plans to change the financial promotion rules other than swifter action at banning inappropriate or illegal promotions, said Werrell.
Therefore the focus should remain on being fair, clear and not misleading. This means displaying risk warnings properly and choosing the appropriate medium that will allow space for disclosure.
ProFundCom is a leading email marketing for finance consultancy designed specifically to support sales and marketing to the financial community. Headquartered in London, the firm works with brokers, hedge funds, large fund managers, wealth management boutiques and asset managers. ProFundCom was founded in 2005 by Paul Das. http://www.profundcom.net.
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