The UK Financial Conduct Authority (FCA ) has asked lawmakers
to introduce stricter rules for technology firms and social media influencers
who promote unauthorised financial products.
Many of these promotions relate to forex trading schemes,
which are often presented by self-described “finfluencers” on platforms such as
Instagram and TikTok. These influencers typically claim high returns and use
lifestyle content to attract followers, raising concerns about misleading or
unverified financial advice.
FCA Officials Demand Faster Action on Finfluencers
During a recent Treasury Select Committee session, senior
FCA officials criticised major technology companies for not doing enough to
stop the spread of illegal financial content. Steve Smart, Director of
Enforcement, and Lucy Castledine, Director of Consumer Investments, said
current efforts by tech platforms are not sufficient.
Castledine said some companies are slow to act when the FCA
flags harmful posts. “We can’t have that content popping up 12 hours later,”
she said. She added that even when accounts are removed, influencers often
return under new names. “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.”
You may find it interesting at FinanceMagnates.com: FCA
Flags 38 Finfluencers amid Surge in Financial Scams Targeting Youth.
FCA issues call to action to MPs over Big Tech and finfluencer roles in financial promotions https://t.co/dlJFGKesuD
— Finextra (@Finextra) May 1, 2025
Pushes for Increased Sentences on Financial Crimes
The FCA also warned that finfluencers—social media figures
who discuss financial topics—are frequently involved in promoting unauthorised
investment products. Although the regulator has brought charges against some
individuals, no convictions have been recorded so far.
Under current laws, promoting unauthorised financial schemes
can lead to a prison term of up to two years. The FCA has said this is not a
strong enough penalty to deter wrongdoing. It is urging Parliament to increase
the maximum sentence to five years.
“Fundamentally this content is illegal,” Castledine told
MPs. “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.”
Trials Set for Forex Trading Scheme Defendants
The request follows legal action brought by the
FCA against nine people linked to an alleged illegal forex trading scheme
advertised online. At Southwark Crown Court, several defendants pleaded not
guilty to charges of unauthorised financial promotions.
One person also denied
giving unauthorised advice on contracts for difference (CFDs). A plea hearing
is scheduled for 26 September 2024. Two trials are set to begin on 1 February
and 15 March 2027, depending on court availability.
The UK Financial Conduct Authority (FCA ) has asked lawmakers
to introduce stricter rules for technology firms and social media influencers
who promote unauthorised financial products.
Many of these promotions relate to forex trading schemes,
which are often presented by self-described “finfluencers” on platforms such as
Instagram and TikTok. These influencers typically claim high returns and use
lifestyle content to attract followers, raising concerns about misleading or
unverified financial advice.
FCA Officials Demand Faster Action on Finfluencers
During a recent Treasury Select Committee session, senior
FCA officials criticised major technology companies for not doing enough to
stop the spread of illegal financial content. Steve Smart, Director of
Enforcement, and Lucy Castledine, Director of Consumer Investments, said
current efforts by tech platforms are not sufficient.
Castledine said some companies are slow to act when the FCA
flags harmful posts. “We can’t have that content popping up 12 hours later,”
she said. She added that even when accounts are removed, influencers often
return under new names. “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.”
You may find it interesting at FinanceMagnates.com: FCA
Flags 38 Finfluencers amid Surge in Financial Scams Targeting Youth.
FCA issues call to action to MPs over Big Tech and finfluencer roles in financial promotions https://t.co/dlJFGKesuD
— Finextra (@Finextra) May 1, 2025
Pushes for Increased Sentences on Financial Crimes
The FCA also warned that finfluencers—social media figures
who discuss financial topics—are frequently involved in promoting unauthorised
investment products. Although the regulator has brought charges against some
individuals, no convictions have been recorded so far.
Under current laws, promoting unauthorised financial schemes
can lead to a prison term of up to two years. The FCA has said this is not a
strong enough penalty to deter wrongdoing. It is urging Parliament to increase
the maximum sentence to five years.
“Fundamentally this content is illegal,” Castledine told
MPs. “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.”
Trials Set for Forex Trading Scheme Defendants
The request follows legal action brought by the
FCA against nine people linked to an alleged illegal forex trading scheme
advertised online. At Southwark Crown Court, several defendants pleaded not
guilty to charges of unauthorised financial promotions.
One person also denied
giving unauthorised advice on contracts for difference (CFDs). A plea hearing
is scheduled for 26 September 2024. Two trials are set to begin on 1 February
and 15 March 2027, depending on court availability.
This post is originally published on FINANCEMAGNATES.
