The Financial Conduct Authority (FCA) has proposed new guidelines for firms using unregulated “finfluencers” to promote financial products.
The guidelines follow reports of the regulator intervening in over 10,000 misleading ads and promotions in 2023, a 17% year-on-year increase.
Lucy Castledine, director of consumer investments at the FCA, said customers need fair, clear, and accurate information to make well-informed financial decisions.
“As of 7 February 2024, authorised firms need permission from the FCA if they want to approve promotions for unregulated persons.
“This makes sure firms approving financial promotions have the required competence and expertise for the promotions being offered,” said Castledine.
The regulator’s particular concern revolves around the promotion of cryptoassets and investments and the targeting of younger age groups, it said.
In 2023, the FCA published 2,285 alerts to help prevent consumers from falling victim to scams, up from 1,800 in 2022.
The guidelines are underpinned by the Consumer Duty regulations, which require firms to provide consumers with transparent and fair information.
The FCA was due to publish comprehensive guidance around finfluencers at the end of 2023, though it is yet to materialise.