The UK’s financial watchdog will lead a consortium of international regulators to tackle the recent phenomenon of illegal ‘finfluencers’.
The Financial Conduct Authority (FCA) has been carrying out a targeted campaign against social media influencers promoting high-risk investments in areas such as forex and cryptoassets since 2022.
The FCA has so far made three arrests with the support of the City of London Police, authorised criminal proceedings against three individuals, invited a handful of other finfluencers for questioning, sent seven cease and desist letters and issued 50 warning alerts.
The alerts resulted in more than 650 take down requests on social media platforms and more than 50 websites operated by unauthorised finfluencers.
The FCA has now partnered with authorities from Australia, Canada, Hong Kong, Italy and the United Arab Emirates to share information on tackling social media personalities promoting financial products with no authorisation or expertise.
“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,” said Steve Smart, joint executive director of enforcement and market oversight at the FCA.
Last October, the FCA brought in 20 ‘finfluencers’ for interviews under caution.
Read more: TV star accused of illegal financial promotions still endorsing cryptoassets
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