Social media ‘influencers’ questioned by city watchdog over product promotions

The city watchdog is questioning social media personalities in a fight against illegal promotions of financial services products.

The Financial Conduct Authority (FCA) said 20 social media influencers, called ‘finfluencers’, are being interviewed under caution.

In recent years, an increasing number of influencers have provided financial advice for which they are not qualified.

This has raised concerns because their followers tend to be young and impressionable.

Regulators are concerned that minor celebrities are persuading people to invest in unsuitable, highly risky or even fraudulent products.

The FCA would not name the people but said it is speaking to them voluntarily out of caution using its criminal powers.

As part of a wider crackdown, the FCA has also recently identified 38 social media accounts on its website that could be running illegal promotions.

The regulator has targeted people who promote foreign exchange (known as FX) trading and contracts for difference (CFDs).

CFDs are high-risk investments used to bet on the price of an asset, including foreign currencies.

Susannah Streeter, head of money and markets at investment platform Hargreaves Lansdown, said: “The censorship of finfluencers should act as a reminder to celebrities and other influencers about the risks they run if they don’t understand the rules.”

Earlier this year, a handful of reality TV stars, including The Only Way is Essex’s Lauren Goodger, Love Island’s Biggs Chris and Geordie Shore’s Scott Timlin, pleaded not guilty to promoting an unauthorized investment scheme.

A trial is scheduled for 2027, and the individuals face up to two years in prison if convicted.