The Financial Conduct Authority (“FCA”) has announced a “crackdown” on so-called ‘finfluencers’ who provide financial advice or promote financial services products on social media platforms without being authorised by the FCA to do so.

The action by the FCA, which includes twenty finfluencers being interviewed under caution and 38 alerts being issued against social media accounts, is part of a targeted campaign by the FCA to address what it has identified as a growing problem.

It also follows recent guidance that was published by the FCA earlier this year (on which we commented here) which contains in-depth information not only for influencers themselves, but also companies partnering with them and online platforms that host them, as to how to ensure that they stay on the right side of the law.

Commenting on the FCA’s recent enforcement action, Steve Smart, joint executive director of enforcement and market oversight at the FCA, said, “finfluencers are trusted by the people who follow them, often young and potentially vulnerable people attracted to the lifestyle they flaunt. Finfluencers need to check the products they promote to ensure they are not breaking the law and putting their followers’ livelihoods and life savings at risk”.

To read more about the FCA’s work in this area and its Guidance on financial promotions on social media, click here