Hundreds of social media posts and dozens of websites operated by financial influencers, commonly known as “finfluencers,” are being removed following action led by the UK’s financial watchdog. Three influencers have also been arrested.
The Financial Conduct Authority (FCA) said the move forms part of an international enforcement effort, which has already resulted in three arrests in the UK.
Finfluencers can legally share financial tips with large audiences online, but the FCA warned that many cross into providing illegal financial advice. This can involve promoting investments without authorisation or failing to disclose risks, often disguised as aspirational content featuring luxury cars, exotic holidays, and designer labels.
Regulators in the UK, Australia, Canada, Hong Kong, Italy, and the United Arab Emirates coordinated their efforts as part of the crackdown.
In the UK alone, the FCA submitted 650 requests for deletions of social media content and oversaw the takedown of 50 websites linked to unauthorised finfluencers. The regulator also issued seven "cease and desist" letters and has invited four individuals in for interview.
Steve Smart, joint executive director of enforcement 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.”
UK law imposes strict rules around authorisation for financial promotions. According to Beth Harris, the FCA’s head of financial crime, these are frequently ignored.
Speaking to BBC Radio 4’s Today programme, Ms Harris explained: “The typical thing you may see is that somebody with a large social media presence will be on a beach in a sunny location with some supercars behind them, and wearing designer clothes and basically trying to sell a lifestyle.
“Often they’ll say they have super algorithms, which means that they are a wonderful trader, so that then you can pay a fee, and then they will send you their trade. But to do this,” she added, “you must be authorised.”
Accountant Abi Foster welcomed the FCA’s intervention. “Not only is it costing people money, but it’s also costing them their mental health and a lot of heartache and stress,” she told the BBC. “Now we are getting all of our education online, it means that [young people] should be able to trust what’s there.”
While the FCA can request the removal of content from social media platforms, it does not currently have the power to compel them to act. The regulator urged tech companies to respond more swiftly to takedown requests.
This appeal coincides with a letter from the Treasury Committee to Meta, questioning its handling of such content.
After Meta was asked why it had taken up to six weeks on occasion to respond to takedown requests from the FCA, it responded: “There was an isolated incident in late 2024 which resulted in a delay in actioning a small number of reports from the FCA. This was rectified, and all other relevant reports made by the FCA have been promptly processed.”
Regulation of Crypto on the horizon
On Tuesday, MPs on the Treasury Committee are set to question FCA chief executive Nikhil Rathi about plans to bring more crypto asset activities under regulatory control.
Last Friday, the FCA announced it is considering lifting its 2021 ban on the sale of crypto exchange-traded notes to retail investors. If approved, this would allow individual investors to buy products tracking the value of cryptocurrencies.
