TikTok has banned financial promotions amid a rise in concerns over scams and young people facing debt problems.
Myron Jobson, Personal Finance Campaigner, interactive investor, says: “The change in policy will hopefully mark the end of dubious and outright misleading adverts of high-risk investments as well as highly volatile cryptocurrency on the platform. The hope is that TikTok’s systems are robust enough to detect and weed out content that falls foul of its revised policy.
“The change appears to be a wholesale ban on the promotion of all financial services and products – meaning regulated financial firms could be swept up in it. This would be a real shame, because it would prevent informed and useful financial content from bona fide financial firms and experts from reaching the masses who use the platform.
“Online searches are a great way of getting investment guidance and ideas, but it can be a minefield. The Reddit versus Wall Street saga which saw the price of so-called meme stocks, like GameStop, soar under the influence of Reddit posters, exemplifies the influence social media has on investing behaviour.
“The key is to check where you are getting your information. There are plenty of reputable online resources offered by likes of the Money and Pension Service, Citizens Advice, financial services companies like interactive investor and the mainstream financial press.”