The UK markets watchdog said it will update social media guidance to deter “finfluencers” from promoting financial products that harm consumers.
The Financial Conduct Authority is consulting on reforms for the next eight weeks and wants to reflect how social media is used today, the regulator said in a statement on Monday.
The FCA asked firms to amend or remove 8,582 promotions last year — 14 times more than 2021 — as it targeted a growing number of internet personalities posting ads that break its rules. Its current social media guidelines were issued in 2015.
“For those touting products illegally, we will be taking action against you,” Lucy Castledine, director of consumer investments at the FCA, said in a statement on Monday.
From Oct. 8, the FCA will ban incentives to invest in crypto, such as “refer a friend” bonuses. Firms must also introduce clear risk warnings and a 24-hour cooling period to give first-time investors the time to consider their investment decision.
