The financial services industry is one of the most highly regulated industries and is ever-evolving with new technology and globalization. As part of this landscape, there have been rules established to help ensure that retail investors don’t interpret Finfluencer content as investment advice.
Xemoto has a robust regulatory framework that everyone who interacts with the platform must follow. It covers clear contract terms of service, codes of conduct, advertising policies, and beyond. These best practices adapt to evolving laws, regulations, and social media policies in Canada and the U.S. Below are five ways that Xemoto stays compliant with financial regulations.
- Vetting: You have worked hard to build your company’s brand. That is why our network of Finfluencers is vetted not simply on their reach but on the quality of the content they create.
- Posting guidelines: Xemoto Finfluencers have clear posting guidelines that help ensure their content is compliant and authentic. Since Finfluencers are not registered investment representatives, there are nuances of what they can and cannot say. You can check out our guidelines here.
- Disclaimers: The FTC requires that influencers disclose if they have a “material connection” to the subject of their post such as being paid to post. Each platform has its own rules of acceptable disclosures. The FTC has posted detailed guidance on its requirements for influencers and for social media advertising and marketing generally that can be found on its website.
- Contracts: Contracts with Finfluencers clearly outline the regulations they must adhere to.
Staying on top of regulations and managing relationships with Finfluencers is a full-time job. Xemoto makes sharing information seamless. Identify the audience, choose the channels and reap the rewards. The opportunity we seize – in a way that no other company can – has quickly become an integral part of any sound investor communications strategy. Get started today by booking your demo!