The UK’s financial regulator is interviewing 20 finfluencers under caution for potentially promoting financial services products on social media illegally.
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The Financial Conduct Authority (FCA) yesterday said it is interviewing the set of ‘finfluencers’ – influencers who offer advice and information on financial products and topics through social media – under caution for potentially promoting and selling financial services products illegally.
Interviews under caution are held as part of criminal investigations; the finfluencers have all attended voluntarily and have not been arrested.
Finfluencers are not FCA-authorised and are unqualified to provide financial advice to young and impressionable – or any – audiences, the regulator says.
In its announcement yesterday, the watchdog also issued 38 warnings against social media accounts that contain potentially unlawful promotions.
It added that 62% of 18- to 29-year-olds follow influencers on social media; 74% of whom say they trust influencers’ advice.
Steve Smart, joint executive director of enforcement and market oversight, identified young followers as “potentially vulnerable”. Up to 90% of young followers have been encouraged to change their financial behaviour by online influencers, according to the regulator.
“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,” Smart added.
The watchdog previously issued guidance on promoting financial products on social media in March. Promoting financial products without approval from an FCA-authorised person with the right permissions could constitute a criminal offence, it said.
The FCA said it expects promotions to provide balanced views of risk and reward to help consumers make informed decisions, with appropriate disclaimers on all promotions. Influencers have been criticised by some for promoting financial products on social media with lavish backdrops, from pools and cocktails to major city skylines, suggesting a correlation between the advertised financial product and their luxurious lifestyle.
Its announcement yesterday follows six British reality TV personalities pleading not guilty to promoting unauthorised trading schemes in July.
Love Island’s Biggs Chris, Jamie Clayton and Rebecca Gormley, The Only Way is Essex stars Lauren Goodger and Yazmin Oukhellou and Geordie Shore’s Scott Timlin will face trials beginning in February and March 2027.
The FCA alleges the defendants were paid by two individuals to provide advice on buying and selling high-risk contracts for difference on Instagram when they were unauthorised to do so.