A trio of “finfluencers” have pleaded not guilty to charges stemming from social media posts that allegedly encouraged their followers to invest in risky trading vehicles.
As part of a broader effort to crackdown on investment schemes being touted on social media, the U.K.’s Financial Conduct Authority (FCA) charged Charles Hunter, Kayan Kalipha and Luke Desmaris with one count each of allegedly “communicating an invitation to engage in investment activity” in violation of securities law.
According to the FCA, the three allegedly encouraged their social media followers to invest in contracts for difference (CFDs) based on foreign exchange trading, without being authorized to promote these investments.
“These charges form part of the FCA’s wider crackdown on unlawful financial promotions by finfluencers,” the regulator said.
In June, it led a coordinated international enforcement effort against social media promotions that involved nine regulators in six countries, resulting in today’s charges, among other actions to address growing concerns about unregistered finfluencers.
All three pleaded not guilty to the charges, and the allegations have not been proven.
They are now scheduled to appear in Southwark Crown Court for a hearing on Oct. 8.