FCA action against unauthorised investment promotions on social media
The regulator brought further enforcement action against unauthorised individuals promoting investments to followers on TikTok, Instagram and YouTube.
By Money Guide editorial team
Published:
The Financial Conduct Authority has taken further enforcement action against social media influencers promoting unauthorised investment schemes — particularly contracts for difference (CFDs), crypto products and 'copy-trading' platforms — to large UK followings.
Promoting financial products in or into the UK without FCA authorisation is a criminal offence. Cases brought in the past year have resulted in fines, prison sentences and director disqualifications, alongside the FCA's continuing 'ScamSmart' consumer awareness campaign.
Consumers can check whether a firm is authorised on the FCA register (register.fca.org.uk) and look for warnings on the regulator's 'unauthorised firms' list. Investments promoted via Direct Messages, encrypted chat or unverified social accounts should be treated with extreme scepticism.
Where consumers have lost money to an unauthorised firm, the Financial Services Compensation Scheme may not cover the loss. Recovery options are usually limited to civil action against the perpetrators.