In general, celebrities and influencers are typically most beneficial when others are telling them what to do and how to act. Otherwise, they really should be ignored. This is even more important when it comes to policy and financial advice. Well, the UK Financial Conduct Authority (FCA) is doing something about it, and the regulator has partnered with multiple other regulators to crack down on these dullards known as Finfluencers.
Steve Smart, joint executive director of enforcement and market oversight at the FCA, commented:
“Our message to finfluencers is loud and clear. They must act responsibly and only promote financial products where they are authorised to do so – or face the consequences.”
In the UK specifically, three arrests have reportedly been made, with criminal proceedings taking place.
An additional four Finfluencers have been asked to visit the agency for a discussion, with seven receiving cease-and-desist orders and another 50 warning letters being forwarded.
These actions are expected to result in more than 650 take-down requests on social media platforms and 50+ websites operated by these so-called “rogue” Finfluencers.
This “global week of action” is being joined by the following regulators.
- Australia, Australian Securities & Investments Commission (ASIC)
- Canada, Alberta Securities Commission (ASC)
- Canada, Autorité des marchés financiers (QAMF)
- Canada, British Columbia Securities Commission (BCSC)
- Canada, Ontario Securities Commission (OSC)
- Hong Kong, Securities and Futures Commission (SFC)
- Italy, The Commissione Nazionale per le Società e la Borsa (CONSOB)
- United Arab Emirates, Securities and Commodities Authority (SCA)
Note that Canada has yet to create a federal regulator and thus struggles with a fragmented regulatory environment that undermines capital markets.
The FCA notes that it has previously taken action against nine other individuals.
The agency said it was not willing to share details on the individuals currently under scrutiny.
A fool and their money are quickly separated, so the FCA advises that it is best not to take advice from individuals who “use the pretence of a lavish lifestyle, often falsely, to promote success.”