Finfluencers promote financial products and share insights and advice with their followers on social media. This can be problematic when they are not authorised and don't give adequate information about the risks of the products concerned.
Contracts For Difference (CFDs) are high-risk derivatives. The FCA has previously said that 80% of customers lose money when investing in CFDs because of the risks. They are often highly leveraged: they use debt to try and amplify returns, which can result in investors losing more than they invested. In the UK, the FCA has imposed restrictions on how CFDs and CFD-like options can be sold and marketed to retail customers. The FCA has been carrying out work to address consumer harm in the UK in this sector, and it has been targeting finfluencers. It's just having your knuckles rapped by the ASA — there can be criminal consequences.
Three individuals recently appeared before Westminster Magistrates' Court, each charged with an offence relating to their social media posts. They are alleged to have encouraged social media followers to invest in CFDs, without having the authorisation to promote these investments. They were each charged with one count of communicating an invitation to engage in investment activity, contrary to section 21(1) of the Financial Services and Markets Act 2000. If found guilty, they could be punished on indictment by a fine and/or up to two years' imprisonment.
These charges form part of the FCA's wider crackdown on unlawful financial promotions by finfluencers. In June 2025, the FCA led a coordinated international enforcement effort involving nine regulators across six countries. The operation resulted in arrests, interviews, cease and desist letters, and over 650 takedown requests across social media platforms and websites.. As part of that operation, the FCA authorised criminal proceedings against these three individuals.
All three defendants pleaded not guilty and will appear at Southwark Crown Court for a hearing on 8 October 2025.
The FCA has published guidance on financial promotions on social media to clarify its expectations for when firms and influencers use social media to communicate financial promotions, and to address emerging consumer harm that the FCA has seen arising from use of social media. They've also worked with the ASA on guidance. In addition, both the ASA and CMA have published more general guidance for influencers and for the brands which use them. It is important that brands make sure that their social media ambassadors know the rules and the consequences of not complying with them.
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