The UK Financial Conduct Authority (FCA) has issued a warning to “Finfluencers” individuals who use social media to promote financial services.
While influencers may be a popular source of information, few of these individuals actually have any notable experience within the financial services industry. Yet by posting on a social media platforms, hundreds of thousands or perhaps millions of individuals can be exposed to these missives.
The FCA reminds influencers that minus regulatory approval, these promotions may be a criminal offense.
“Consumers need to be alert to dubious adverts and scams online, but it is important that influencers ensure they’re on the right side of the rules and consider what would happen to their own reputations if they’re found to promote products illegally.”
Lucy Castledine, Director of Consumer Investments at the FCA, explains that any marketing for financial services must be fair, clear, and not misleading. ”
Obviously, they should not promote scams.
“Promotions aren’t just about the likes, they’re about the law. We will take action against those touting financial products illegally,” says Castledine.
The FCA shares that in the last year, they have removed more than 10,000 misleading promotions – an increase from 2022.