The FCA is interviewing 20 finfluencers under caution as part of a “targeted action” against illegal financial influencers.  

The FCA said today it has also issued 38 alerts against social media accounts operated by finfluencers which may contain unlawful promotions. 

The FCA has already previously taken action against nine individuals and finfluencers for promoting an unauthorised trading scheme, with a court case pending. 

The watchdog said increasing numbers of young people were falling victim to scams and finfluencers can often play a part in the process.

Nearly two-thirds (62%) of 18 to 29-year-olds follow social media influencers, the FCA said. Nearly three in four of these younger people (74%) said they trusted the advice of finfluencers and 9 in 10 young followers said they have been spurred to change their financial behaviour as a result of social media influencers. 

Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: “Finfluencers are trusted by the people who follow them, often young and potentially vulnerable people attracted to the lifestyle they flaunt. 

“Finfluencers need to check the products they promote to ensure they are not breaking the law and putting their followers' livelihoods and life savings at risk.” 

Finfluencers are defined by the FCA as social media personalities who uses their platforms to promote financial products and share insights and advice with their followers. They have increased rapidly in number in recent years. Most are not FCA authorised and are unqualified to be giving financial advice. 

The FCA said it was unable to name those targeted for interview at this stage but the individuals were taking part voluntarily under caution in line with the FCA’s criminal powers. 

The regulator has recommended consumers should check the FCA’s warning list before making any decision about how to invest their money and has encouraged people to use the FCA’s InvestSmart page.