Influencers fined in FCA crackdown on illegal financial promotions: how to protect your money

Seven social media influencers have been fined after illegally promoting a foreign exchange trading scheme to their combined 4.5m Instagram followers.

The group, which included reality TV personalities, admitted breaching financial promotion rules. The case was heard at Southwark Crown Court and forms part of a wider crackdown by the Financial Conduct Authority (FCA) on unauthorised financial promotions.

The court handed down fines totalling more than £7,000, along with over £14,000 in costs. The offences can carry penalties of a fine and/or up to two years’ imprisonment.

The FCA has made clear that while some ‘finfluencers’ operate legally, others are promoting investments without proper authorisation, putting people at risk.

Why this matters

There’s a big difference between a regulated financial adviser and a social media influencer.

If you use an FCA-authorised adviser:

• they must follow strict professional standards
• they must recommend products that are suitable for you
• they must act in your best interests
• you can complain to the Financial Ombudsman Service if something goes wrong

If you act on advice from an unregulated influencer:

• they don’t have to act in your best interests
• they don’t have to check whether an investment is suitable for you
• they may be paid to promote a product
• you’re unlikely to have access to compensation if you lose money

It’s also important to remember that influencers speak to a mass audience. They don’t know your personal finances, goals or attitude to risk, all things a regulated adviser must consider.

How to protect yourself

1. Check the FCA Register

Before taking financial advice, confirm that the person or firm is authorised by the FCA.

2. Be cautious of high-return promises

Investments offering quick or guaranteed returns are often high risk.

3. Do your own research

Look beyond social media posts. Check independent sources and trusted financial websites.

4. Don’t mistake popularity for expertise

A large following doesn’t mean someone is qualified, or even acting lawfully.

When it comes to your money, make sure the advice you follow comes from someone who is regulated and required to put your interests first.