“The platforms themselves should be policing this issue. Arguably, they’re in the privileged position of having the data to do so. And really, enforcement should be a last resort,” he added.
But even when Big Tech responds to takedown requests, the content can simply appear again if social media firms are not actively policing what goes on their platforms. Harris said the FCA found that 55 percent of the adverts Meta had taken down after a request by the watchdog popped up again, with either identical or almost identical content.
A Meta spokesperson said: “There was an isolated incident in late 2024 which resulted in a delay in actioning a small number of reports from the FCA. This was rectified and all other relevant reports made by the FCA have been promptly processed.”
Internationally, the global securities watchdog IOSCO has recommended regulators take actions including: Fines, revoking licenses, issuing cease-and-desist orders, and publicizing enforcement actions to deter non-compliance. But the standard-setter has no direct legal powers and relies on national policymakers to put in place relevant laws and coordinate.
Some public bodies appear to be taking the “if you can’t beat ‘em, join ‘em” mentality. Bank of England Governor Andrew Bailey now gives interviews to TikTok finance personalities in an effort to reach Gen-Z individuals, most recently speaking to a group of social media influencers after the central bank’s interest rate decision on May 8.
For those in the traditional financial services space, it highlights a wider problem of a financial advice gap. If people don’t know where to turn to for financial advice, they’re more likely to sit up when it appears directly in front of them on their screens.
The FCA published new rules in June which redefine the “advice guidance boundary,” and are designed to allow financial services firms to offer more advice to groups of savers. This is welcome news for customers “desperate for advice,” Jayne Opperman, CEO consumer relationships at Lloyds Banking Group, told a UK Finance conference in London on June 24.
“Customers do want advice. They do want guidance. We know that a lot of our customers turn to social media and influencers who are motivated to get them to invest in dubious products and services, and then we have to deal with the consequences of that and try and help them get out of it,” she said.