Written by Victoria McCarron
The FCA have combined forces with the Advertising Standards Authority and influencer Sharon Gaffka (who appeared on Season 7 of the popular TV series Love Island) to educate ‘finfluencers’ on the dangers of being involved in illegal financial promotions.
This stems from rising concern expressed by the FCA and ASA around misuse of social media by influencers, particularly in relation to ‘get rich quick’ schemes, and the subsequent risk of consumer harm.
They have released an infographic designed to flag aspects that influencers should check prior to accepting brand deals for financial products and services. This includes information around the promotion of cryptocurrencies, unintentionally engaging in regulated activities and requirements for clarity over advertisement content, alongside highlighting relevant FCA and ASA rules.
Further to this, the FCA and ASA have indicated their intention to continue to engage with influencers and their agents on this matter. In particular, the FCA will invite influencer agents and the Influencer Marketing Trade Body to a roundtable discussion on illegal financial promotions.
This campaign follows the publication of the FCA’s annual financial promotions report in February of this year. This report revealed that intervention by the FCA led to 8,582 promotions being amended or withdrawn during 2022 - 14 times more than 2021. Additionally, 2022 saw the FCA publish 1882 consumer warnings on its website relating to unauthorised activities.
'This campaign with the FCA and ASA will hopefully make sure other influencers stay on the right side of the law and prevent them from unknowingly introducing their followers to scams or high-risk investments.'