‘Finfluencers’ are social media personalities who use their online presence to share insights and advice, and promote financial products.
Abdulali’s comments contextualise the FCA’s announcement against the backdrop of previous enforcement actions, and provide insight from a regulatory perspective, particularly in light of the Consumer Duty and broader enforcement activities.
He adds:
“This latest crackdown follows previous actions by the FCA – for example it brought charges against individuals in July 2024 in respect of an unauthorised forex trading scheme.
Promotion without authorisation may constitute a criminal offence. But also on the regulatory front:
- The FCA has issued social media guidelines, under which firms are expected to proactively ensure that their affiliates comply with the regulations on financial promotions.
- Firms which are approving financial promotions for a retail audience must ensure that communications deliver “good outcomes” in satisfaction of the Consumer Duty. Firms can fall foul of the FCA's rules if they do not take care in this.
Therefore, even if no criminal offence is committed, those who do not comply with the FCA's financial promotion rules may be subject to fines or other enforcement action.
In the case of overseas firms illegally promoting to UK customers, especially looking at crypto promotions, the FCA can place them on a warning list, and take steps to remove or block illegal financial promotions.
Policing this requires the FCA to work with other regulators, here and overseas, and also to put pressure on the tech companies as to financial promotions on social media, to limit to those that have been properly approved by FCA authorised firms.
Regulators need to share resources and intelligence in order to police this effectively across jurisdictions.”