The FCA is investigating 20 financial influencers (finfluencers) who may be illegally promoting financial products, marking the start of targeted action against misleading online promotions.

The FCA has also issued 38 warnings about social media accounts run by finfluencers that may be promoting financial services unlawfully.

With more young people falling victim to scams, the role of finfluencers is coming under increasing scrutiny. Research shows that nearly two-thirds (62%) of people aged 18 to 29 follow influencers on social media, with 74% trusting their advice. Alarmingly, 9 in 10 of these young followers admit that they’ve changed their financial behavior due to this influence.

Steve Smart, Joint Executive Director of Enforcement and Market Oversight at the FCA, stated:
“Finfluencers hold significant sway over their followers, many of whom are young and vulnerable, drawn in by the glamorous lifestyle they showcase.
Finfluencers must ensure the products they promote are legal and safe, or they risk not only breaking the law but also jeopardizing their followers’ financial security and life savings.”