FCA joins global regulators to protect social media users from unauthorised financial advice
A coordinated international crackdown has been launched to tackle the rising threat of rogue financial promotions spread by certain social media influencers, widely known as “finfluencers”.
Led by the Financial Conduct Authority (FCA) in the UK, the week-long campaign, which began on 2 June, saw participation from regulators in Australia, Canada, Hong Kong, Italy and the United Arab Emirates. The initiative aims to shield social media users from misleading and often illegal financial advice proliferating across platforms like Instagram, TikTok, and YouTube.
Finfluencers – individuals who share financial insights or promote products to their online followers – have grown in influence over recent years. While many operate within legal boundaries, the FCA has raised concerns that some promote high-risk investments or unregulated services without proper authorisation, often presenting a false image of wealth and success to lure followers.
In the UK alone, the FCA has issued 50 warning alerts, which are expected to result in over 650 take down requests for misleading content on various social platforms and more than 50 websites operated by unauthorised finfluencers. The regulator has also sent seven cease and desist letters, invited four influencers for interview, and, with the support of the City of London Police, arrested three individuals, with criminal proceedings now authorised.
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.”
The FCA emphasised that rogue promotions can cause serious financial harm to everyday investors who may be misled into high-risk or outright fraudulent schemes. Often, the illegal promotions are masked behind glamorous lifestyles – luxury cars, exotic holidays, and claims of overnight success – designed to build trust and sell unrealistic expectations.
In a parallel move, the Treasury Committee has written to Meta, the parent company of Facebook and Instagram, seeking clarification on its handling of FCA alerts. The committee pointed out concerns raised during a session with FCA officials in April, when it was revealed that Meta had taken up to six weeks to act on takedown requests involving individual influencers.
The letter from the committee asks Meta to explain:
“Why it has taken you on occasion up to six weeks to respond to a takedown request from the Financial Conduct Authority?”
It also asks the tech giant to disclose how long posts flagged by the FCA remained online before action was taken, covering incidents from the past year. Meta has been given a deadline of 20 June 2025 to respond.
The FCA continues to advise consumers to consult its warning list before making any financial decisions. Its InvestSmart platform offers guidance for safer investing and tools to help users verify if a firm is authorised.
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Sam Richardson, deputy editor of Which? Money, welcomed the joint regulatory action, stating:
“With more people turning to social media for investment advice, so-called finfluencers can be the deciding factor in make-or-break financial decisions for many people.”
He added:
“We highly recommend that anyone looking for information before investing includes well-established and reputable sources in their research, and if seeking financial advice, they obtain it from professionals or companies that are regulated by the Financial Conduct Authority.”
The global nature of social media means that misleading financial promotions can originate anywhere and reach vast audiences instantly. This international crackdown, regulators hope, will send a strong message to rogue actors and offer better protection for online investors.
