Regulators pull the plug on rogue ‘finfluencers’

Editorial

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While many financial influencers, or finfluencers, are not breaking any laws, others are promoting financial products and services without authorisation through online videos and social media posts, where they leverage their falsified lavish lifestyle. 

Led by the FCA, the following regulators participated in the ‘global week of action against unlawful finfluencers’:

• Australia, Australian Securities & Investments Commission (ASIC);
• Canada, Alberta Securities Commission (ASC);
• Canada, Autorité des marchés financiers (QAMF);
• Canada, British Columbia Securities Commission (BCSC);
• Canada, Ontario Securities Commission (OSC);
• Hong Kong, Securities and Futures Commission (SFC);
• Italy, The Commissione Nazionale per le Società e la Borsa (CONSOB); and
• United Arab Emirates, Securities and Commodities Authority (SCA).

In the UK, the FCA has made three arrests, authorised criminal proceedings against three individuals, invited four finfluencers for interview, sent seven cease and desist letters, and issued 50 warning alerts. The regulator also revealed that the warning alerts will result in “over 650 take down requests on social media platforms and more than 50 websites operated by unauthorised finfluencers.”

Steve Smart, joint executive director of enforcement and market oversight, FCA, says: “Our message to finfluencers is loud and clear. They must act responsibly and only promote financial products where they are authorised to do so – or face the consequences.”