The FCA is interviewing 20 ‘finfluencers’ under caution who may be promoting products illegally, as part of its ongoing campaign against financial product promotions via social media personalities.
Additionally, the FCA has issued 38 alerts concerning social media accounts operated by these influencers that may offer unlawful promotions. The regulator has noted that nearly two-thirds (62%) of individuals aged 18 to 29 follow social media influencers. Among these young followers, 74% expressed trust in the influencers’ advice, and 90% reported being encouraged to modify their financial behaviors.
Recent research from Barclays revealed that half (51%) of Britons who seek investment guidance on social media are taking risks with their money by failing to verify the credibility of the finfluencers and their content.
Steve Smart, joint executive director of enforcement and market oversight at the FCA, stated, “Finfluencers are trusted by their followers, many of whom are young and potentially vulnerable, drawn in by the lifestyles they portray. Finfluencers must ensure the products they promote comply with the law to safeguard their followers’ livelihoods and life savings.”
The FCA has already acted against nine individuals and finfluencers for promoting an unauthorized foreign exchange trading scheme, with trial dates scheduled for February 1 and March 15, 2027, at Southwark Crown Court.