UK influencers who provide services such as financial advice have found themselves in hot water. The UK’s the Financial Conduct Authority is cracking down on people who offer products and services without being properly authorized..
Three influencers and Love Island stars — Biggs Chris, Jamie Clayton, and Rebecca Gormley — promoted what The Independent described as “a type of high-risk trading contract in which retail investors typically lose money up to 80% of the time.”
This led to them being charged last year for issuing unauthorized communications of financial promotions on social media. While the trio denies the charges, a trial date has been fixed for 2027.
The FCA Is Launching A Campaign
Now, the FCA has teamed up with other financial regulators on a campaign to target these ‘finfluencers.’
As part of this campaign, three people were arrested and seven cease and desist letters were issued. An additional 50 influencers received warnings.
“Our message to finfluencers is loud and clear,” Steve Smart, joint executive director of enforcement and market oversight at the FCA, said to The Independent. “They must act responsibly and only promote financial products where they are authorised to do so – or face the consequences.”
Similar regulators across the world are joining this campaign from countries like Canada, Australia, Italy, Hong Kong and the UAE.
James Alleyne, who works financial services regulatory team at Kingsley Napley, also told the outlet: “The FCA first warned those advertising and trading investments on social media about the risks of doing so in March 2024 and has subsequently been extremely assertive in its approach […] and has not hesitated to issue criminal proceedings where it believes someone has crossed the line in terms of providing advice or conducting other regulated business.”
For now, this doesn’t affect finfluencers in the US, but needless to say, we won’t be looking for a man in finance anytime soon.
