Eight departments join forces to regulate financial online marketing and crack down on false advertising

1、 Policy background: Frequent chaos and urgent need for regulatory oversight

In recent years, Internet technology has promoted the rapid development of online marketing of financial products. Short video, live broadcast and other multiple channels have become the main marketing positions, which not only facilitates financial institutions to obtain customers, but also facilitates consumers to understand the products. However, industry chaos has arisen, with some institutions using false advertising such as "low-risk, high-yield" to pursue traffic. Non licensed institutions engage in unauthorized marketing, and third-party platforms have unclear rights and responsibilities and illegally intervene in the sales process, resulting in frequent cases of consumer rights infringement. In this context, the eight departments have jointly issued the "Measures" to accurately address industry pain points and fill regulatory gaps, which has become an urgent need to standardize industry development.

2、 Core standard: Full coverage of dual scenarios, strict adherence to regulatory red lines

The core of the Measures is to achieve full chain supervision of online marketing of financial products, focusing on regulating two major scenarios and setting clear red lines. Financial institutions' self operated marketing must be carried out within the permitted scope, establish a content review mechanism, clearly disclose key information such as interest rates, rates, and risk warnings, strictly prohibit capital preservation commitments and performance forecasts, and ensure information transparency and traceability.

Third party platforms must accept commissions in accordance with the law, not exceed the scope of commissions or transfer commissions, truthfully disclose information of cooperating institutions, redirect to self operated platforms of financial institutions to complete purchases, and must not intervene in the sales process. It is strictly prohibited to provide convenience for illegal financial activities. At the same time, the Measures explicitly prohibit non licensed institutions and individuals from conducting financial marketing, and prohibit non-financial practitioners from recommending stocks or marketing financial products through live streaming, short videos, and other forms, in order to curb chaos from the source.

3、 Industry impact: Compliance becomes the core, and the industry is facing a reshuffle

The implementation of the Measures will promote a new round of reshuffle in the financial industry and third-party platforms. Financial institutions need to rectify their existing marketing models, improve their review mechanisms, and strengthen their main responsibilities. The extensive customer acquisition model will be difficult to sustain. Third party platforms will return to a technology service centric approach, and platforms that violate regulations and engage in misleading advertising will be removed. The compliance advantages of licensed institutions will be further highlighted, and market competition will return to the essence of products and services. In the long run, this will purify the industry environment and achieve a win-win situation for financial institutions, platforms, and consumers.

4、 Consumer Guide: Understand the New Regulations and Protect Property Safety

The ultimate goal of the Measures is to protect the rights and interests of financial consumers. Ordinary people need to be wary of inducing propaganda such as "guaranteed high returns", and remember that risks and benefits coexist; Verify the qualifications of marketing entities and reject recommendations from non licensed institutions or individuals; Carefully read the instructions and risk warnings when purchasing products, retain relevant evidence, and promptly file complaints and protect rights with regulatory authorities when rights are damaged.