FCA leads regulators in global finfluencer crackdown

The UK’s Financial Conduct Authority (FCA) has teamed up with regulators around the world to lead a week-long global crackdown on illegal finfluencers.

Many consumers trust social media influencers for advice on financial matters, but often platforms are used to unscrupulously sell risky products without paying heed to regulation.

The campaign, which started on 20 April, featured enforcement activity, consumer awareness campaigns and educational programmes aimed at finfluencers themselves. This has included securing a guilty plea from Geordie Shore’s Aaron Chalmers over his illegal promotions, sending warning letters and alerts to individuals and firms, and 120 account takedown requests to social media platforms.

It also saw the FCA calling on social media platforms to play a more proactive role in stopping illegal promotions.

Equivalent regulators in 13 other countries, including Canada and Australia, also took part in the activity.

Steve Smart, executive director of enforcement and market oversight at the FCA, said:

“This collective push with international partners is vital in helping to protect millions of consumers from harm. We will only make real progress in the fight against financial crime if every part of the system plays its role – including social media firms.”

Caroline Black, consultant at Gherson Solicitors LLP, commented: “It is notable that influencers have become a key target for the FCA and internationally in recent months.  Influencers need to be aware that straying into regulated territory is not a way to make easy money – but a quick path to becoming embroiled in criminal legal proceedings.  Advice should be sought prior to producing such content.”