LONDON’S BUSINESS NEWSPAPER
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ISSUE 4,014
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CITYAM.COM
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FCA SET TO GET TOUGH ON MEMES
SOFT POWER, HARD CASH
£2bn boost for London from big gigs JESS JONES
REGULATOR TO TACKLE NEW FORMS OF FINANCIAL PROMOTIONS ONLINE CHARLIE CONCHIE THE CITY watchdog is poised for a social media clampdown as it looks to target ‘finfluencers’ and firms flogging crypto schemes and financial products online with misleading adverts. The Financial Conduct Authority (FCA) said yesterday it will roll out new social media guidance to “modernise the information firms should use when promoting financial products or services online”. The regulator said it would be looking at promotions using ‘memes’ — viral internet graphics — that are regular features of unregulated financial promotions online. The new guidelines come as the FCA tightens the screws on the way that firms across the industry promote their products to customers. Crypto firms will be banned from using incentives like ‘refer a friend’ bonuses to customers from October, while buy-now pay-later bosses were threatened with jail time if they fail to fall in line with
financial promotion rules. Lucy Castledine, director of consumer investments at the FCA, said sweeping new social media guardrails were needed due to a “growing number of ads falling short” of the current guidance. “We want people to stay on the right side of our rules, so we’re updating our guidance to clarify what we expect of firms when marketing financial products online,” she added. “And for those touting products illegally, we will be taking action.” The FCA has also been looking to clamp down on ‘finfluencers’ who tout get-rich-quick schemes and financial tools. Regulators globally have been looking to stamp out celebrities peddling crypto schemes with illegal and misleading ads, with Kim Kardashian and YouTuber Logan Paul both being fined in recent years.
Memes, such as the ‘Swole Doge’, used to promote financial products are set to face FCA scrutiny
ECONOMISTS and melomaniacs alike have reason to cheer the capital’s postpandemic musical revival – with the capital’s coffers given a £2bn boost by large and small concerts alike. Nearly 5m music lovers flocked to the capital last year to attend live music events, according to a report from UK Music, filling hotels, bars and restaurants. The umbrella body’s chief executive Jamie NjokuGoodwin, writing for City A.M., said the findings are a “testament to just how important a thriving musical ecosystem is for our towns and cities”, warning a number of smaller music venues and festivals are still struggling to survive amid rising costs. With the “right support", UK Music believes the economic impact of music tourism could “increase significantly” by 2030 as it benefits local economies and creates more jobs. £ OPINION: PAGE 14
Gresham House to be taken private in £470m deal with US firm Searchlight Capital CHRIS DORRELL GRESHAM House will become the latest UK-listed firm to be taken private after agreeing a £470m deal with US-based private equity company Searchlight Capital. Shareholders in the AIM-listed fund manager, which invests in assets such as forestry and solar
farms, will receive 1,105p per share, a premium of 63 per cent to its closing price on Friday. The Gresham House board of directors unanimously recommended the offer, announced yesterday, to shareholders. The board said that its ability to raise funds and access new capital was challenging as a listed company
but could be “accelerated” through the deal. The existing management team has the support of Searchlight, providing continuity for Gresham House’s clients and stakeholders. Anthony
Townsend, chair of Gresham House, said the deal represents a “compelling opportunity” in the challenging economic environment. Searchlight said it was attracted by Gresham House’s position in sustainable alternative asset classes and believed there was a “robust platform”
for future growth. It saw “significant potential…to make further bolt-on and potentially transformational transactions across asset classes and internationally”. A slew of UK-listed firms have been taken private in recent months as foreign buyers have enjoyed relatively cheap valuations.
INSIDE NO LUCK FOR POST OFFICE SCANDAL VICTIMS P3 DFS UNDER PRESSURE P9 OIL PRICES SLIDE P6 IN DEFENCE OF LANDLORDS P11 FORMULA E CHIEF ON SUSTAINABILITY P18