Arrests made in crackdown on finfluencers

Hundreds of social media posts and websites operated by financial influencers are to be taken down following action by the City regulator.

The Financial Conduct Authority (FCA) said the move was part of an international crackdown, which has led to three arrests in the UK.

So-called finfluencers can legitimately give financial tips on social media to large audiences, but sometimes this can stray into illegal financial advice.

That can include a lack of authorisation and a failure to explain the risks - all packaged in promotional posts using the pretence of a lavish lifestyle.

Regulators across across the UK, Australia, Canada, Hong Kong, Italy and the United Arab Emirates were involved in the crackdown during the week.

The FCA said that, in the UK, it resulted in 650 requests for deletions from social media, and 50 take downs of websites operated by unauthorised finfluencers.

It has also sent seven "cease and desist" letters, and invited four finfluencers for interview.

Steve Smart, from the FCA, said: "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."

On Tuesday, the MPs on Treasury Committee will quiz the chief executive of the FCA, Nikhil Rathi, on moves to bring more cryptoasset activity into regulation.

On Friday, the regulator said it was proposing to lift the ban on offering crypto exchange traded notes to retail investors.

This would allow individual investors to put money into products that track the value of crypto.

The ban has been in place since 2021.

Additional reporting by Yasmin Malik