European Securities and Markets Authority (‘ESMA’) issued a warning for people posting investment recommendations on social media in an effort to raise awareness of the requirements established by MAR which apply when posting investment recommendations on social media and to also warn about the risks of market manipulation in such publications.
All market participants are instructed to adhere to regulatory guidelines, including those from ESMA, regarding posting investment recommendations on social media. It emphasizes transparency and accuracy to prevent market manipulation and outlines specific disclosure requirements for investment recommendations, including identification of producers and conflicts of interest. Additional requirements are detailed for professionals and experts, with non-compliance potentially leading to sanctions under relevant legislation.
