The European Securities and Markets Authority has issued a statement on the requirements under the EU Market Abuse Regulation for firms and individuals that make investment recommendations on social media. ESMA is concerned about the potential harm to retail investors who may base their investment decisions on information made available on social media sites, in particular in situations such as the Gamestop case. The EU rules, which are designed to prevent the misleading of investors, apply to anyone based in or outside the EU that distributes information proposing an investment decision about EU financial instruments listed in the EU or financial instruments that depend on or effect the price or value of a listed financial instrument. The types of financial instruments include shares, bonds, derivatives, contracts for difference and emission allowances. Certain digital assets categorized as securities may also be caught. The rules apply where the distribution is aimed at a wide audience and can be made in analyst reports, articles, and traditional or social media. Investment recommendations must be accompanied by certain information such as the identity of the person making the recommendation and conflicts of interest. Non-compliance with the rules could amount to market manipulation, punishable by civil penalties or subject to criminal prosecution.