Finfluencers face global crackdown of rogue financial promotions

By Priscilla Gaudoin, 8 September 2025

Regulators around the world have joined forces to impose measures on the burgeoning sector of financial influencers, known as ‘finfluencers’.

These influencers often present themselves as successful traders, showcasing luxurious lifestyles to attract followers.

In a significant move, the UK Financial Conduct Authority (FCA) conducted interviews with 20 social media influencers under caution, focusing on those promoting high-risk financial products, such as Contracts for Difference (CFDs) and foreign exchange trading. The FCA’s intervention aims to ensure that such promotions comply with UK financial regulations.

This crackdown was part of a broader international initiative. The FCA collaborated with regulators from Australia, Canada, Hong Kong, Italy and the United Arab Emirates to address the global issue of unauthorised financial promotions. This coordinated effort underscores the shared concerns amongst financial regulators about the influence of unregulated financial advice online. 

Importance of international collaboration

The rise of digital platforms has made financial promotions borderless, with influencers reaching audiences across the globe. This international reach necessitates a collaborative approach amongst regulators. The FCA’s partnership with foreign counterparts allows for the sharing of information, joint investigations, and coordinated enforcement actions.

Such collaboration is crucial in tackling the challenges posed by finfluencers.  For instance, influencers operating from one jurisdiction can easily target consumers in another, making it difficult for individual regulators to take effective action. By working together, regulators can ensure that financial promotions are fair, clear, and not misleading, regardless of where the influencer is based.

Regulatory concerns raised

The FCA has emphasised several concerns regarding the activities of finfluencers, as follows:

1. Lack of authorisation: Many influencers promote financial products without the necessary regulatory permissions, which can mislead consumers into making uninformed investment decisions.
2. Misleading content: Some influencers exaggerate potential returns or downplay risks associated with financial products, creating unrealistic expectations amongst their followers.
3. Targeting vulnerable audiences: Young and inexperienced investors are particularly susceptible to the allure of quick financial gains, making them prime targets for misleading promotions.
4. Evasion tactics: Influencers often circumvent regulatory scrutiny by frequently changing their online identifiers or platforms, making it challenging for regulators to track and act against them. 

These concerns have prompted the FCA to take a more proactive stance, issuing warnings, conducting interviews, and collaborating with other regulators to address the issue comprehensively.

Key actions for firms

Regulated firms that engage with influencers to promote their products must ensure compliance with regulatory standards. The FCA’s guidance emphasises that firms are responsible for the content of financial promotions, even if created by third-party influencers.  

To mitigate risks, firms should:

• Conduct due diligence: Vet influencers thoroughly to ensure they have the necessary qualifications and authorisation to promote financial products.
• Provide clear guidance: Establish clear parameters for influencers regarding the content and messaging for promotions, or ensure they align with regulatory requirements.
• Monitor content: Regularly review the content produced by influencers to ensure ongoing compliance with financial promotion rules.
• Educate influencers: Provide training to influencers about the legal and ethical standards expected in financial promotions.
• Implement contracts: Use formal agreements to outline the responsibilities and expectations of both parties, reducing the risk of non-compliance.

By taking these steps, firms can protect themselves from potential legal repercussions and uphold the integrity of financial promotions.

The way forward

The FCA’s crackdown on finfluencers marks a significant step in regulating the evolving landscape of financial promotions. However, the digital nature of these promotions presents ongoing challenges. Continuous collaboration amongst international regulators, coupled with proactive measures by financial firms, are essential to ensure that consumers are protected from misleading financial advice.

As the digital world continues to shape the financial sector, regulators and firms must remain vigilant and adaptable. The lessons learned from the FCA’s recent actions can serve as a blueprint for other jurisdictions grappling with similar issues, fostering a global approach to responsible financial promotions. 

Recent developments

In addition, the FCA has led an international effort to remove unauthorised financial promotions, resulting in numerous takedown requests and arrests. 

The FCA has faced challenges in ensuring that social media platforms promptly remove harmful content, highlighting the need for better cooperation between regulators and tech companies. 

Several finfluencers have been charged with promoting unauthorised financial schemes, signalling a more aggressive stance by regulators. 
These developments underscore the importance of compliance and vigilance in the realm of financial promotions, especially in the digital age. 

Evolving landscape

The recent crackdown reflects a growing recognition of the need to regulate financial promotions in the digital era. Through international collaboration and stringent enforcement, regulators aim to protect consumers from misleading financial advice.  

Financial firms must adapt to this evolving landscape by ensuring compliance and fostering responsible marketing practices. Only through collective efforts can the integrity of financial promotions be maintained in an increasingly interconnected world.