Hearts & Minds: Go directly to jail. Do not pass go, do not collect £200*

As one door closes, another opens. That’s been the story of financial services promotion over the past couple of decades. Newspapers used to have bulging ‘Personal Finance’ or ‘Money’ sections. Their size was determined by the amount of advertising they attracted. Often, journalists found they had acres of editorial to fill and few stories. Step forward the smart PR, with some specialist consumer research, a case study or two and quotes from the finance company. Then, advertising dried up and that discreet marketing route was shut.

Some financial services companies chose another path, following FMCG, and alighting on third-party endorsement, using social media influencers, to push their wares. Now, the Financial Conduct Authority has had enough, questioning 20 ‘finfluencers’ over the possible illegal touting of investment products. At the same time, the watchdog has issued 38 ‘alerts’ on its warnings page against social media accounts operated by finfluencers that may contain unlawful promotions.

It’s long been understood that the sports star wearing branded clothing is being paid to do so – Nike’s association with Tiger Woods is a prime example. Usually, the size and detail of the sponsorship deal will be announced. That does not cause a problem. But in other sectors, there can be a tendency to blur the ethical boundaries – some companies, if possible, would like to get away without any declaration of payment so it appears as if the celebrity or influencer genuinely has chosen them over the rest.

Tempting as it is, the message from the FCA clampdown and from increasingly savvy, outspoken consumers, is don’t go there. If people smell a rat, they will say so and there is no more available forum to them than social media. Thinking you’re clever and seeking someone’s backing, but then not making it clear they’re being paid, is increasingly risky and likely to backfire with criticism galore.

In publishing, there is growing outing of suspicious endorsements: the same names cropping up on the front and back of books; endorsers who also happen to be part of that publisher’s stable; an endorser of one book, the author of which is endorsing theirs.

Brands – FMCG, financial – should ask themselves whether such a tactic is worth the hassle and loss of reputation (not to mention for financial, the risk of prosecution leading to fines and up to two years in prison). Before everyone gets carried away, the comms team need to inject a heavy dose of reality. What was just about acceptable in the past may not be anymore.

*it should be noted that no money exchanged hands for the promotion of Monopoly ™.  Hearts & Minds is a fan of it and many other board games.

Chris Blackhurst is one of the UK’s foremost business journalists. He was previously Editor of The Independent and City Editor of the Evening Standard.