The Financial Conduct Authority (FCA) says it is becoming ‘increasingly concerned’ about the spread of unregulated financial advice on social media.

The regulator’s director of consumer investments Lucy Castledine made the comments at PIMFA’s Compliance Conference yesterday.

She warned more consumers than ever were at risk of “taking advice from unregulated sources, such as social media, investing in assets with a higher risk than their tolerance and making them more vulnerable to scams”.

Her warning came two days after the Online Safety Bill passed its final reading in the House of Lords.

“We want to see a market where consumers can only access products and services that meet their needs and that means making sure there is a wide variety of support available,” she said.

Castledine also told firms the FCA will hold them responsible for the publication of illegal financial promotion of crypto-assets.

She added this was of ‘paramount concern’ and presented a significant risk to consumers.

From 8 October, the FCA will become the first regulator in the world to regulate the promotion of crypto-assets.

Social media firms, other intermediary firms and app stores played a significant role in the promotion of crypto-assets in the UK, Castledine added.