UK targets rogue 'finfluencers' in joint action with foreign regulators
June 6 (Reuters) - Britain's financial watchdog has joined forces with foreign regulators to crack down on people who promote financial products on social media without authorisation, and will make 650 requests for platforms to remove content, it said on Friday.
The Financial Conduct Authority said it had teamed up with regulators from Australia, Canada, Hong Kong, Italy and the United Arab Emirates for a coordinated week of action against the illegal financial promotions.
It provided no further details on other regulators' actions or the extent of their cooperation with their British counterparts.
Financial regulators around the world have become increasingly concerned about the rise of "finfluencers", who use their social media accounts to promote financial products or give financial advice.
The FCA last year warned influencers that promoting a financial product without regulatory approval could be a criminal offence.
In the UK's latest crackdown, police have arrested three people, and the FCA has sent seven cease-and-desist letters. It has also issued 50 warning alerts, which will lead to 650 takedown requests for social media platforms and 50 takedown requests for websites operated by unauthorised financial influencers, the watchdog said.
"Our message to finfluencers is loud and clear. They must act responsibly and only promote financial products where they are authorised to do so – or face the consequences," said Steve Smart, joint executive director of enforcement and market oversight at the FCA.
The FCA last year charged nine people over a foreign exchange trading scheme promoted on social media. Their trials are due to take place in 2027.
Separately on Friday, parliament's treasury committee of lawmakers said it had written to Facebook and Instagram owner Meta (META.O), opens new tab asking for information on its approach to financial influencers.
The committee said it was reviewing evidence from the FCA that Meta is slower to remove harmful content than other social media platforms.
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