A&O Sherman highlights recent FCA regulatory changes targeting social media influencers promoting financial products. The FCA’s first prosecution of nine influencers, who illegally promoted a high-risk foreign exchange trading scheme, shows its commitment to enforcing compliance with Section 21 of the Financial Services and Markets Act (FSMA). These influencers face fines or imprisonment for unauthorized financial promotions.
The FCA’s Social Media Guidance (March 2024) emphasizes that all financial promotions must be clear, fair, and comply with FSMA regulations. Firms using social media and affiliate marketers are responsible for ensuring their promotions follow FCA rules, especially when promoting high-risk investments like CFDs and cryptoassets. The FCA is increasing its use of tools, like AI, to monitor and enforce these standards.
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