Esma urges social media companies to tackle unauthorised financial ads
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today written to several social media and platform companies (X, Meta, TikTok, Alphabet, Telegram, Snap, Amazon, Apple, Google, and Reddit) encouraging them to take proactive steps to prevent the promotion of unauthorised financial services.
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The increasing spread of online scams targeting retail investors poses a serious risk to investors themselves and to society, with fraudulent actors exploiting digital platforms to advertise unlawful financial services. These activities often mislead consumers into engaging with firms that lack proper authorisation, resulting in financial losses and in the loss of trust in the financial sector.
This approach complements last week’s initiative launched by the International Organization of Securities Commissions, highlighting the global nature of doing online harm linked to financial misconduct.