Crackdown launched on ‘rogue financial promotions' by some influencers
Regulators have joined forces for an international crackdown to protect social media users from rogue promotions by some financial influencers, or 'finfluencers'.
The week of action started on June 2 and involved the Financial Conduct Authority (FCA) in the UK as well as regulators from Australia, Canada, Hong Kong, Italy and the United Arab Emirates.
In the UK, the FCA has issued 50 warning alerts, which the regulator said will result in more than 650 take down requests on social media platforms and more than 50 websites operated by unauthorised finfluencers.
It has also sent seven 'cease and desist' letters, and invited four finfluencers for interview.
The FCA said it has also made thee arrests with the support of the City of London Police and authorised criminal proceedings against three people.
Finfluencers are social media personalities who may promote financial products and share insights and advice with their followers.
Many are acting legitimately and not breaking any laws – but others may tout products or services illegally and without authorisation through online videos and posts, where they use the pretence of a lavish lifestyle, often falsely, to promote success, the regulator said.
The FCA said it has also made thee arrests with the support of the City of London Police and authorised criminal proceedings against three people.
Steve Smart, joint executive director of enforcement and market oversight at the FCA, 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.'
Meanwhile, the Treasury Committee said it had sent a letter to Meta, owners of Facebook and Instagram, asking for information on its approach to financial influencers.
The committee said the correspondence follows evidence from FCA officials to the committee in April that it had taken Meta up to six weeks to act on alerts on individual influencers.
The committee has asked Meta to set out to it why 'it has taken you on occasion up to six weeks to respond to a takedown request from the Financial Conduct Authority?'
It has also asked Meta in the letter to set out the number of days allowed to elapse in which posts that the FCA requested to be taken down have remained online.
The request covers the past 12 months and the committee has asked for a reply by June 20 2025.
The FCA said that consumers should check its warning list before making any decision about how to invest their money.
Its InvestSmart page contains information to help people make investment decisions.
Sam Richardson, deputy editor of Which? Money, said: 'With more people turning to social media for investment advice, so-called finfluencers can be the deciding factor in make-or-break financial decisions for many people.
'They can be based anywhere in the world, so it's good to see the FCA working with other regulators on this crackdown.'
He added: 'We highly recommend that anyone looking for information before investing includes well-established and reputable sources in their research, and if seeking financial advice they obtain it from professionals or companies that are regulated by the Financial Conduct Authority.'
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