By PAUL O’DONONGHUE, Senior Correspondent
THE UK’s FCA (Financial Conduct Authority) has arrested three so-called ‘finfluencers’ as part of a wider social media crackdown.
The watchdog has also “authorised criminal proceedings” against three separate individuals.
When queried by AML Intelligence, the FCA did not say why the influencers have been arrested or what ‘criminal proceedings’ it may take. It did not provide any personal details of the six people.
Steve Smart, joint executive director of enforcement and market oversight at the 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.”
Finfluencers are social media personalities who offer financial advice or promote financial products to their followers.
The FCA previously said many of these influencers are often “unqualified to be giving financial advice to the very impressionable age groups who follow them.”
FCA finfluencer crackdown
Last October, the FCA interviewed 20 finfluencers suspected of illegally promoting financial products.
The FCA’s latest announcement came after a ‘week of action’. The event involved nine regulators, from Australia, Canada, Hong Kong, Italy, the United Arab Emirates and the UK.
The FCA said its efforts are leading an “international crackdown on illegal finfluencers”.
“Regulators across the globe, led by the Financial Conduct Authority (FCA), have joined forces to protect social media users from illegal financial promotions by rogue finfluencers,” it said.
The FCA also announced it has:
- invited 4 finfluencers for interview
- sent 7 cease and desist letters
- issued 50 warning alerts
“The warning alerts will result in over 650 take down requests on social media platforms and more than 50 websites operated by unauthorised finfluencers,” the watchdog said.
The FCA has already taken action against nine individuals and finfluencers for promoting an unauthorised trading scheme.
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