Laura WilesThe FCA is interviewing 20 “finfluencers” under caution in a targeted action against social media account holders which may be promoting financial services products illegally. It has also issued 38 alerts against social media accounts which may contain unlawful promotions.
The FCA highlighted that 62% of 18 to 29-year olds follow social media influencers, and 74% of those said they trusted their advice. 9 in 10 young followers have also been encouraged to change their financial behaviour.
Steve Smart, the FCA’s joint executive director of enforcement and market oversight, said that finfluencers must “check the products they promote to ensure they are not breaking the law and putting their followers’ livelihoods and life savings at risk”.