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Influencers have been warned against promoting financial products on social media as the city’s watchdog vowed to crack down on illegal advertising.
The Financial Conduct Authority (FCA) has issued updated guidance to online content creators on how they can advertise on platforms such as Instagram.
The guidelines apply to financial products such as loans and pensions, as well as investment plans, including cryptocurrencies.
It comes after Kim Kardashian was fined £1million in the US for failing to disclose she had been paid £200,000 to promote cryptocurrency Ethereum Max to her millions of followers in 2021.
Financial promotions must be clear, fair and not misleading, the British regulator said.
Crypto bust: Kim Kardashian (pictured) fined £1 million in the US for failing to disclose she was paid £200,000 to promote cryptocurrency Ethereum Max
Advertisements for high-risk products such as cryptocurrencies should also be labeled with clear warnings for consumers.
The watchdog reminded influencers that they could commit a criminal offense if they promote financial products subject to regulation without permission.
According to the FCA, firms are ‘on the hook’ for all their promotions and must ensure everyone they work with is following the rules.
Lucy Castledine, from the watchdog, said: ‘Promotions are not just about likes, they are about the law. We will take action against those who illegally promote financial products.”