The UK’s main regulator has called for strong and decisive action against leading technology firms and social media influencers who promote unauthorised financial schemes.
The UK Financial Conduct Authority (FCA) has urged national policymakers to introduce tough new laws against technology firms and ‘finfluencers’ who promote unverified financial schemes online.
Misleading or unauthorised investment tips from financial influencers have become more common on popular platforms like Instagram and TikTok. They typically promote high returns or quick profits and feature content showing wealthy lifestyles to attract followers.
Addressing MPs at a recent Treasury Select Committee session, senior FCA officials raised concerns about the lack of action taken by leading tech firms to tackle what is a growing issue. Lucy Castledine, FCA director of consumer investments, said not enough is being done to protect victims of financial scams.
Pointing out that some companies are too slow to act when the FCA flags up suspicious posts, Castledine said that finfluencers simply switch to another account and often using new names, in order to continue targeting social media users.
“We can’t have that content popping up 12 hours later,” Castledine told the committee. “At the moment we have to submit individual account takedowns. The Big Tech platforms have got the technology to identify this; they need to be proactive about it otherwise we will be in a continued whack-a-mole.”
What is a finfluencer?
A finfluencer is a well-known individual, typically a celebrity or television personality, who promotes financial trading schemes online. They are almost always posted on their personal social media accounts, which tend to have a large number of followers.
Popular social media companies like Instagram, TikTok, Facebook and X are the favoured platforms used by finfluencers. This is because they offer wide reach and high engagement, meaning they have the potential to go viral and become a highly successful – and profitable – business model.
What are the current laws on this issue?
Under existing UK law, individuals found guilty of promoting illegally unauthorised financial schemes face up to two years in prison. However, the FCA regards this as an insufficient deterrent. It is actively encouraging Parliament to introduce new legislation to increase the maximum term to five years.
“Fundamentally this content is illegal,” Castledine added. “It is driving people into parting with their money. It is very much a recurring theme we are seeing and it is a growing trend. We need people to sit up and take action.”
What action has the FCA taken before?
In October 2024, the regulator launched an investigation into the matter, interviewing 20 prominent finfluencers under caution. Using special criminal powers, FCA officials spoke with the unnamed individuals voluntarily. It also issued 38 alert warnings against social media accounts which it believed featured unlawful promotions.
Previously, the authority alleged that nine social media personalities provided unauthorised advice on buying and selling high-risk contracts for difference (CFDs). These included stars from popular reality television shows like ‘The Only Way is Essex’, ‘Love Island’ and ‘Geordie Shore’.
Those named were Emmanuel Nwanze, Holly Thompson, Lauren Goodger, Yazmin Oukhellou, Biggs Chris, Jamie Clayton, Rebecca Gormley, Eva Zapico and Scott Timlin. Each was charged with one count of unauthorised communications of financial promotions.
Several individuals pleaded not guilty, of which one also pleaded not guilty to providing unauthorised CFDs advice. Another individual did not enter a plea and has their plea hearing set for a later date. The trial dates have been set for February and March 2027, which represent the earliest available court dates to rule on this case.
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