The Financial Conduct Authority (FCA) joined forces with nine overseas regulators in a week-long enforcement campaign aimed at shutting down unlawful investment promotions by social media “finfluencers”. Running from 2 to 8 June, the initiative reflected mounting global concern that influencer-led content is tempting consumers – especially younger investors – into risky schemes that bypass established safeguards.
Finfluencers typically cultivate a lifestyle brand, presenting themselves as successful entrepreneurs in exotic locations while offering paid “masterclasses”, tip sheets and subscription groups that promise rapid wealth. When those posts stray into recommending individual shares, crypto-assets or complex products, they cross the line into regulated territory. Promotion without authorisation is a criminal offence in the UK, punishable by an unlimited fine and up to two years’ imprisonment.
Cross-border cooperation takes shape
The “global week of action” pulled in regulators from Australia, Canada, Hong Kong, Italy and the United Arab Emirates alongside the FCA. Joint investigations focused on identifying repeat offenders, freezing linked websites and coordinating requests to major social-media platforms. The multilateral approach recognises that many influencer accounts operate across borders, complicating jurisdiction and slowing enforcement if agencies act alone.
Participating authorities exchanged real-time intelligence on user handles, wallet addresses and domain registrations. The FCA said the project would form a template for future campaigns, allowing rapid referral where content deleted in one country resurfaces elsewhere.
Domestic enforcement gathers pace
In the UK, the FCA worked closely with the City of London Police. Three arrests have already been made and criminal proceedings begun against three individuals. Separately, four suspected finfluencers have been interviewed under caution, seven cease-and-desist letters issued and 50 public warning alerts published on the regulator’s website.
Those alerts are intended to prompt platforms to remove roughly 650 non-compliant posts. The watchdog is also seeking to close around 50 websites linked to the promotions. Success, however, hinges on the speed of response by social media firms acting on takedown requests.
Pressure grows on social-media platforms
At a Treasury Committee hearing last month, FCA officials criticised the slow reaction times of certain tech companies, noting that adverts can remain live for up to six weeks before removal. MPs were told that existing duty-of-care provisions are insufficient when algorithms continue to push high-risk content to vulnerable users.
The regulator is understood to favour tougher “host-publisher” rules – similar to those applying to financial publishers – combined with swifter automated blocking of any post that links payment for financial advice to extravagant lifestyle claims.
Trials delayed by court backlog
Despite the recent arrests, there have been no UK convictions arising from finfluencer activity to date. The first major case, concerning Emmanuel Nwanze and five celebrities who allegedly promoted his trading signals, is listed for trial in 2027. With Crown Court backlogs climbing again this year, further proceedings are likely to slip into 2028 and beyond.
Legal specialists warn that the delay could embolden copycat promoters. They argue that only a high-profile conviction – supported by a significant custodial sentence – will create an effective deterrent. In the interim, accountants advising entrepreneurial clients are being reminded to check that any online financial promotions are covered by the client’s regulatory permissions, or fall within a valid exemption.
International enforcement challenges remain
While the week of action has underscored regulators’ willingness to cooperate, structural hurdles persist. Many influencer accounts are incorporated offshore, and revenue flows through payment processors headquartered outside the FCA’s jurisdiction. Cross-border evidence-gathering can therefore prove lengthy. For UK investors, the practical upshot is that reimbursement under the Financial Services Compensation Scheme is unlikely when losses arise from unregulated overseas operators.
Steve Smart, joint executive director of enforcement, 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.”
Practitioners are advising clients to document any socia media marketing carefully, ensuring that promotions involving financial products are either signed off by an authorised firm or avoid specific recommendations altogether. Firms that knowingly share or repost non-compliant content risk breaching the financial promotion rules themselves.
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