In an intensified crackdown on illegal financial promotions, the Financial Conduct Authority (FCA) has initiated targeted measures against “finfluencers”—social media influencers who promote financial services products. As of last month, 20 individuals are being interviewed under caution, with 38 alerts issued for social media accounts suspected of unauthorised promotions.
The rapid rise of finfluencers has exposed younger and often inexperienced audiences to financial advice that may not be compliant with UK law. A staggering 62% of 18 to 29-year-olds follow social media influencers, and among those, 74% report trusting the financial advice provided. This has led nearly 90% of young followers to alter their financial habits based on online content, often without fully understanding the risks involved.
The FCA emphasises that finfluencers—who are not FCA-authorised—must carefully vet the products they promote. Steve Smart, FCA's Joint Executive Director of Enforcement and Market Oversight, commented on the risks: “Finfluencers are trusted by the people who follow them, often young and potentially vulnerable people attracted to the lifestyle they flaunt. Finfluencers need to check the products they promote to ensure they are not breaking the law and putting their followers' livelihoods and life savings at risk.”
While finfluencers bring financial topics into mainstream culture, they often lack the necessary credentials to provide regulated advice. The FCA remains vigilant, using its criminal powers to address breaches of law in financial promotions. The regulator has already acted against nine individuals for promoting unauthorised trading schemes and continues to investigate additional cases.
For those considering investments, the FCA advises checking its warning list to verify if a firm or individual is authorised. The full press release can be found here.
For any queries regarding FCA regulations or compliance matters, please contact us.
