Emma RadmoreESMA has made a statement on investment recommendations on social media. Following a rise in these types of promotion, and concerns that retail investors do not understand the risks involved in following these recommendations, ESMA stresses that the recommendations must be presented so that investors can clearly distinguish facts from opinions.
ESMA said the statement is intended to remind firms of their obligations, and what happens when they do not comply with applicable rules – which could include not only supervisory action and fines but potentially even prosecution for market manipulation.
