FCA Cracks Down on Illegal Finfluencers: 20 Interviewed under Caution, 38 Flagged

The UK’s Financial Conduct Authority (FCA) has taken action against financial influencers (“finfluencers”) who are allegedly promoting financial services products illegally. In a recent move, the FCA interviewed 20 finfluencers under caution, employing its criminal powers to address the growing issue. These individuals now face potential penalties, including fines and imprisonment of up to two years.

The FCA's focus has been on celebrities who leverage social media platforms to tout financial products, specifically, foreign exchange and contracts for difference (CFD) trading. Additionally, the FCA has expressed concern over finfluencers touting other financial products, such as credit lending and debt solutions, unlawfully. The agency continues to actively search for and take action against those promoting financial products or services without appropriate permissions.

As part of its efforts, the FCA has issued 38 alerts on its warnings page against social media accounts operated by finfluencers. These accounts have been flagged for potentially containing unlawful promotions. 

38 finfluencer accounts warned by the FCA

This crackdown comes amidst rising concerns over the impact of finfluencers on young people, many of whom are falling victim to scams. Research indicates that nearly 62% of 18- to 29-year-olds follow social media influencers, and a significant 74% of those said they trusted their advice. According to the FCA, nine in ten young followers said that they have been influenced to change their financial behavior based on an influencer's guidance.

Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: “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.”