In the face of a growing number of reckless finfluencers touting dodgy investments on social media, the U.K.’s Financial Conduct Authority (FCA) is stepping up enforcement.
The regulator reported that its interventions against misleading advertisements and promotions rose by 17% in 2023, resulting in over 10,000 ads being withdrawn, or revised.
The number of scam alerts issued by the FCA also rose by about 27% year over year, driven largely by expanded powers to combat illegal crypto promotions.
Since those powers took effect in the fourth quarter, the FCA issued 450 scam alerts involving crypto promotions, the regulator reported.
New rules also took effect on Feb. 7, requiring registered firms to obtain permission from the FCA if they want to approve promotions for unregulated people.
“This makes sure firms approving financial promotions have the required competence and expertise for the promotions being offered,” the FCA said.
Additionally, the regulator highlighted its concerns about the rise of finfluencers that are promoting financial products, including investments and credit products, on social media, typically targeting younger investors.
“People need clear, fair and accurate information to base their financial decisions on. We will continue to intervene and take action when we identify firms not meeting our minimum standards,” said Lucy Castledine, director of consumer investments at the FCA, in a release.