Regulated companies should report “illegal” Fenlift to social media platforms and go to the city regulator if the city regulator is ignored.
Lucy Castledine, director of the Financial Conduct Authority, conveys an uncompromising message to the role in the financial markets.
“People illegally promote financial services on social media will be stopped,” Castledine said in a speech at the PIMFA compliance conference yesterday.
But she added that the technology platform could be a barrier to holding Rogue Finfluencers accountable.
She said: “There are still too many weaknesses in the control of social media platforms. It’s very easy to promote illegal content online.
“For bad actors, it’s too easy to escape obstacles, such as “phoenixing” or “Lifeboating” to a new account.
“There is not enough time to combat new threats, such as deep fake scams from authorized companies.”
Castledine added: “These weaknesses not only harm consumers, but also undermine the efforts of legitimate financial services companies to “know” consumers who we know they are providing support to online.
“We urgently need social media platforms to strengthen and stop this illegal content. We welcome the introduction of the Online Security Act [which came into force in December 2024] And look forward to its strong implementation.
“If you see illegal content online and when reporting illegal content to a technology platform, we want to hear from regulated companies, for example, if you find a deep fake scam for the company.”
“We will continue to take action against those who provide advice illegally to protect the integrity of consumers and markets,” she added.
Last month, regulators filed lawsuits against Charles Hunter, Kayan Kalipha and Luke Desmaris, who appeared in Westminster District Court for individually charged crimes related to social media posts.
They face allegations related to encouraging social media followers to invest in forex contracts without authorization to promote these investments.
This is important, Rathi said, because data from regulators suggest that about 36% of adults visit social media for financial information and advice.
Also in June, UK regulators led the way with international action against illegal Finfluencers, which involved sharing of information with other regulators from Australia, Canada, Hong Kong, Italy and the United Arab Emirates.
