International crackdown targets influencers promoting financial products

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Influencers promoting financial products on social media have been targeted by an international investigation led by the UK’s Financial Conduct Authority.

Three people were arrested in the UK, while a further four were invited for interview, the FCA said in a statement Friday. It did not name the individuals, but said it also issued 50 warning notices and seven cease-and-desist letters for promoters operating without authorization.

“Our message to finfluencers is loud and clear. They must act responsibly and only promote financial products where they are authorized to do so or face the consequences,” said Steve Smart, joint executive director of enforcement and market oversight at the FCA.

Nine regulators from Australia, Canada, Hong Kong, Italy, United Arab Emirates and the UK were involved in the crackdown, according to the statement.

The FCA has been scrutinizing the surge of interest in finance content on social media platforms such as Instagram and TikTok in recent years. Last summer, it brought charges against several reality TV stars and influencers for promoting foreign exchange trading. They have pleaded not guilty and a trial is scheduled for 2027.

As part of its latest investigation, the FCA has issued 650 take-down requests to social media companies. Those requests can take Meta Platforms Inc. as long as six weeks to action, Lucy Castledine, director of consumer investments at the regulator, told the Treasury select committee in April.

Meg Hillier, chair of the committee, wrote to the US technology giant on June 2 asking for clarification on the delays, according to a separate statement from the TSC on Friday.

“There was an isolated incident in late 2024 which resulted in a delay in actioning a small number of reports from the FCA,” Meta said in a statement in response to the Treasury. “This was rectified and all other relevant reports made by the FCA have been promptly processed.”