FCA leads global effort to curb unauthorised financial advice on social media
A global enforcement effort has been launched to tackle unauthorised financial promotions by social media influencers, as authorities respond to growing concerns over misleading content online.
The initiative, led by the UK’s Financial Conduct Authority (FCA), brought together nine regulatory agencies from countries including Australia, Canada, Hong Kong, Italy, and the United Arab Emirates. The week-long operation began on June 2 and focused on online financial promotions made without proper authorisation.
In the UK, the FCA confirmed a series of enforcement actions, including three arrests supported by the City of London Police. It also initiated criminal charges against three individuals, summoned four influencers for questioning, issued seven cease and desist orders, and published 50 alerts about unlicensed promotions.
These alerts are expected to result in more than 650 takedown requests on social media platforms and over 50 websites linked to unauthorised financial influencers.
The growing popularity of so-called “finfluencers” — social media users who share financial advice or promote investment products — is exposing consumers to increased risks. While many influencers operate legally, others present unverified investment opportunities, sometimes using misleading portrayals of wealth and success to attract followers.
“Our message to finfluencers is loud and clear,” said Steve Smart (pictured), joint executive director of enforcement and market oversight at the Financial Conduct Authority. “They must act responsibly and only promote financial products where they are authorised to do so – or face the consequences.”
The FCA has already taken enforcement action against nine individuals and influencers involved in promoting an unauthorised trading scheme.
The regulator also encourages consumers to check its warning list before making investment decisions and to visit the InvestSmart portal for guidance on choosing suitable financial products.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
