Credit, Collections & Insolvency News
The Financial Conduct Authority (FCA) reported a 174% rise in actions against influencers last year, including the first arrests for promoting high-risk investments.
The FCA says that financial advice on social media has become increasingly risky, with ‘finfluencers’ promoting dubious financial products, with seven reality TV stars pleading guilty to illegal promotions, receiving fines between £600 and £10,000.
Some 55% of those following social media financial tips reported losing money. The FCA is urging social media platforms to be more proactive in identifying and removing unlawful content early.
Seven social media influencers were sentenced at Southwark Crown Court for their role in the promotion of an unauthorised foreign exchange trading scheme. Biggs Chris, Jamie Clayton, Lauren Goodger, Rebecca Gormley, Yazmin Oukhellou, Scott Timlin and Eva Zapico all pleaded guilty to one count of issuing unauthorised financial promotions.
The outcomes were that Lauren Goodger was fined £3,750 and ordered to pay costs of £5,778.18. Biggs Chris was fined £600 and ordered to pay costs of £1,000. Jamie Clayton was fined £820 and ordered to pay costs of £1,000. Rebecca Gormley was given a conditional discharge and ordered to pay costs of £2,866.42. Yazmin Oukhellou was fined £974 and ordered to pay costs of £1,000. Scott Timlin was fined £938 and ordered to pay costs of £1,000. with Eva Zapico was given an absolute discharge and ordered to pay costs of £1,770.44.
Steve Smart, Executive Director of Enforcement and Market Oversight at the FCA, said “These influencers betrayed the trust of those who followed them. We’ll continue to work with responsible influencers and go after those who put the financial wellbeing of their followers at risk.”
