'Finfluencers’ charged for promoting unauthorised trading scheme
Summary
The FCA announced earlier this month that it was bringing charges against several individuals regarding promoting an investment scheme through a social media account, including charging several social media influencers for issuing unauthorised communications of financial promotions to their millions of followers.
This action has followed the FCA releasing its finalised guidance on financial promotions on social media (FG24/1) in March 2024. In this guidance the FCA makes it clear that unauthorised persons in scope of the regulations, such as influencers, who promote financial products or services without the approval of an FCA authorised person may be committing a criminal offence, and that it is the responsibility of the FCA authorised person to ensure they have appropriate monitoring and oversight of affiliates communicating financial promotions.
The FCA makes it clear that overall responsibility for the compliance of promotions lies with the authorised firm – and the FCA is now taking action and bringing charges against firms and individuals who have acted against this guidance, which shows this is something the FCA are keen to be proactive on.
Thistle’s in-house experts are able to provide guidance and feedback on your firm’s financial promotions policies and procedures, as well as providing assistance on individual promotions to ensure these remain compliant.