The Financial Conduct Authority (FCA) joined forces with eight international regulators for a week of action to combat the risks of finfluencers on social media.
Finfluencers are widespread throughout social media platforms. They promote themselves as successful entrepreneurs in luxurious destinations to lure people into paying for their services such as masterclasses to get rich quick and following their investment strategies.
Regulators from the UK, Australia, Canada, Hong Kong, Italy and the United Arab Emirates (UAE) took part in a 'global week of action against unlawful finfluencers' from 2 June.
In the UK, the FCA:
- made three arrests with the support of the City of London Police
- authorised criminal proceedings against three individuals
- invited four finfluencers for interview
- sent seven cease and desist letters
- issued 50 warning alerts.
The FCA says the warning alerts will result in over 650 take down requests on social media platforms and more than 50 websites operated by unauthorised finfluencers.
Steve Smart, Joint Executive Director of Enforcement and Market Oversight 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.'
Internet link: FCA