The UK's Financial Conduct Authority (FCA) has launched a sweeping enforcement initiative targeting "finfluencers" – social media personalities promoting high-risk financial products without authorisation. The move forms part of a broader, coordinated international crackdown involving regulators from Australia, Canada, Hong Kong, Italy, and the UAE, and reflects growing concerns over the risks posed by online financial misinformation.

Announced as part of a "week of action" beginning 2 June, the FCA has made three arrests, sent cease and desist letters to seven individuals, and issued over 650 take-down requests for social media content deemed to be promoting unauthorised investments, including crypto assets. These efforts align with the UK's new Online Safety Act, which expands the FCA's ability to monitor and respond to harmful financial content online.

The crackdown sends a clear message: promoting financial products online now falls squarely under regulatory scrutiny, especially when influencers lack the necessary FCA authorisation.

Financial Services Partner Karl Foster commented on the regulatory shift.

"Regulators are increasingly scrutinising finfluencers as social media's influence grows, particularly among younger audiences. Many promoting 'get-rich-quick' strategies unknowingly cross into regulated investment advice—a criminal offence in the UK punishable by fines or up to two years' imprisonment. Social media's unregulated nature heightens risks of scams and misinformation, leaving regulators reliant on platforms' cooperation for enforcement. The FCA's statutory duty to protect consumers and market integrity justifies this crackdown, which aligns with its broader goals—such as curbing high-risk investments by inexperienced investors. Recent global actions, like India's ban on finfluencer Asmita Patel, underscore the need for international regulatory coordination, especially as decentralized finance (DeFi) expands. However, as the Treasury Committee has highlighted, delayed responses from platforms like Meta to takedown requests remain a hurdle."

The FCA's warning list continues to grow, now including dozens of unregistered crypto platforms and, more recently, three high-profile "crypto finfluencers."

While the Online Safety Act is designed primarily to regulate digital platforms, its impact is being felt across financial services. According to the FCA, the Act has given the regulator new tools to ensure that fraudulent promotions can be flagged and removed more effectively.

The FCA's crackdown shows online promotion of financial products must meet the same regulatory standards as traditional advertising channels. For firms and individuals alike, compliance is no longer optional – especially in the fast-moving digital investment space.

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