The Financial Conduct Authority (FCA) in the UK has teamed up with regulators from around the world to combat illegal finfluencers.
Nine international regulatory bodies, including those from Australia, Hong Kong, Canada, Italy, the UAE, and the UK, are working together to safeguard social media users against unlawful financial promotions by irresponsible influencers.
Actions Taken By FCA
In the United Kingdom, the FCA has already issued 50 warning alerts and sent seven cease and desist letters in response to false claims made by influencers. The authority has also secured three arrests with support from local police in London and initiated criminal proceedings against multiple individuals.
The FCA’s warnings have resulted in over 650 requests for removal on social media platforms and more than 50 websites operated by illegal finfluencers being taken down. The FCA began issuing these warnings since March 2024, with the goal of promoting greater financial responsibility and transparency regarding the risks associated with trading alternative financial assets.
Unfortunately, many of the accounts involved are based outside the UK, complicating the FCA’s ability to take immediate action without coordinated efforts from international law enforcement agencies.
Future Actions by the FCA
By forming alliances with regulators from various global territories, the FCA aims to send a strong message to fake finfluencers and increase awareness about the detrimental impacts of irresponsible trading.
Across the globe, several other international regulatory bodies are taking similar measures, highlighting the scale of the issue. Social media platforms must also enhance their accountability regarding content shared with wide and influential audiences. However, limited governance means these platforms cannot be compelled to monitor or police influencers to protect vulnerable consumers.
The FCA notes that in many cases, victims tend not to take legal action if financial losses are minimal, leaving few options for those who have already been defrauded.