Regulated firms should report “unlawful” finfluencers to social media platforms and come to the City regulator if they are ignored.  

The Financial Conduct Authority’s director, consumer investments, Lucy Castledine (pictured) put across an uncompromising message on the role of finfluencers in financial markets. 

“People unlawfully promoting financial services on social media will be stopped,” said Castledine in a speech to the PIMFA Compliance Conference yesterday. 

But she added that tech platforms can act as a barrier to holding rogue finfluencers to account. 

She said: “There are still too many weaknesses in the controls of social media platforms. It is too easy to promote illegal content online.  

“It is too easy for bad actors to evade blocks, such as by ‘phoenixing’ or ‘lifeboating’ to new accounts.  

“Not enough is being done to combat new threats, such as deep fake scams of authorised firms.” 

Castledine added: “Not only do these weaknesses harm consumers, but they undermine efforts by legitimate financial services firms to ‘meet’ consumers where we know they are turning for support – online.   

“We urgently need social media platforms to step up and stop this illegal content at source. We welcome the introduction of the Online Safety Act [which came into force in December 2024] and look forward to its robust implementation. 

“We want to hear from regulated firms if you are seeing illegal content online and any challenges you are experiencing when reporting illegal content to tech platforms, such as if you spot deep fake scams of your firms.” 

She added: “We will continue to take action against those who give advice unlawfully, to protect consumers and the integrity of our markets.” 

Last month, the regulator led cases against Charles Hunter, Kayan Kalipha and Luke Desmaris, who appeared before Westminster Magistrates’ Court, individually charged with an offence relating to their social media posts. 

They face charges relating to encouraging social media followers to invest in foreign exchange contracts for difference, without having the authorisation to promote these investments. 

In June, Financial Conduct Authority chief executive Nikhil Rathi told the House of Commons Treasury Committee it had stepped up its fight against finfluencers.

Rathi said this was important as the regulator’s data shows that around 36% of adults accessed social media for their financial information and advice. 

Also in June, the UK watchdog took the lead in an international move against illegal finfluencers, which involved information sharing with other regulators from Australia, Canada, Hong Kong, Italy and the United Arab Emirates.