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| Version 1 | Version 2 |
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| Finfluencers: Arrests made in crackdown by regulators | Finfluencers: Arrests made in crackdown by regulators |
| (about 2 hours later) | |
| Hundreds of social media posts and websites operated by financial influencers are to be taken down following action by the City regulator. | Hundreds of social media posts and websites operated by financial influencers are to be taken down following action by the City regulator. |
| The Financial Conduct Authority (FCA) said the move was part of an international crackdown, which has led to three arrests in the UK. | The Financial Conduct Authority (FCA) said the move was part of an international crackdown, which has led to three arrests in the UK. |
| So-called finfluencers can legitimately give financial tips on social media to large audiences, but sometimes this can stray into illegal financial advice. | So-called finfluencers can legitimately give financial tips on social media to large audiences, but sometimes this can stray into illegal financial advice. |
| That can include a lack of authorisation and a failure to explain the risks - all packaged in promotional posts using the pretence of a lavish lifestyle. | That can include a lack of authorisation and a failure to explain the risks - all packaged in promotional posts using the pretence of a lavish lifestyle. |
| Regulators across across the UK, Australia, Canada, Hong Kong, Italy and the United Arab Emirates were involved in the crackdown during the week. | Regulators across across the UK, Australia, Canada, Hong Kong, Italy and the United Arab Emirates were involved in the crackdown during the week. |
| The FCA said that, in the UK, it resulted in 650 requests for deletions from social media, and 50 take downs of websites operated by unauthorised finfluencers. | The FCA said that, in the UK, it resulted in 650 requests for deletions from social media, and 50 take downs of websites operated by unauthorised finfluencers. |
| It has also sent seven "cease and desist" letters, and invited four finfluencers for interview. | It has also sent seven "cease and desist" letters, and invited four finfluencers for interview. |
| Steve Smart, from the FCA, said: "Our message to finfluencers is loud and clear. They must act responsibly and only promote financial products where they are authorised to do so - or face the consequences." | Steve Smart, from the FCA, said: "Our message to finfluencers is loud and clear. They must act responsibly and only promote financial products where they are authorised to do so - or face the consequences." |
| Promises of riches | Promises of riches |
| There are strict rules surrounding authorisation requirements for financial promotions in the UK. In some cases these are flouted, according to Beth Harris, head of financial crime at the FCA. | There are strict rules surrounding authorisation requirements for financial promotions in the UK. In some cases these are flouted, according to Beth Harris, head of financial crime at the FCA. |
| "The typical thing you may see is that somebody with a large social media presence will be on a beach in a sunny location with some super cars behind them, and wearing designer clothes and basically trying to sell a lifestyle," she told the BBC's Today programme. | "The typical thing you may see is that somebody with a large social media presence will be on a beach in a sunny location with some super cars behind them, and wearing designer clothes and basically trying to sell a lifestyle," she told the BBC's Today programme. |
| "Often they'll say they have super algorithms that means that they are a wonderful trader, so that then you can pay a fee, and then they will send you their trade." | "Often they'll say they have super algorithms that means that they are a wonderful trader, so that then you can pay a fee, and then they will send you their trade." |
| However, to do this, she said, "you must be authorised". | However, to do this, she said, "you must be authorised". |
| Accountant Abi Foster welcomed the move. "Not only is it costing people money, but it's also costing them their mental health and a lot of heartache and stress," she told the BBC. | |
| "Now we are getting all of our education online, it means that [young people] should be able to trust what's there." | |
| The FCA can request that social media platforms take down certain content, but the regulator has no powers to enforce them to do so. | The FCA can request that social media platforms take down certain content, but the regulator has no powers to enforce them to do so. |
| It called on these platforms to act on its requests quicker. | It called on these platforms to act on its requests quicker. |
| The plea comes as the Treasury Committee has written to the technology company Meta - the owner of Facebook and Instagram - questioning its response to this kind of harmful content. | The plea comes as the Treasury Committee has written to the technology company Meta - the owner of Facebook and Instagram - questioning its response to this kind of harmful content. |
| The committee has asked Meta to set out to it why "it has taken you on occasion up to six weeks to respond to a takedown request from the Financial Conduct Authority?" | The committee has asked Meta to set out to it why "it has taken you on occasion up to six weeks to respond to a takedown request from the Financial Conduct Authority?" |
| A statement from Meta regarding the committee's letter said: "There was an isolated incident in late 2024 which resulted in a delay in actioning a small number of reports from the FCA. This was rectified and all other relevant reports made by the FCA have been promptly processed." | A statement from Meta regarding the committee's letter said: "There was an isolated incident in late 2024 which resulted in a delay in actioning a small number of reports from the FCA. This was rectified and all other relevant reports made by the FCA have been promptly processed." |
| Crypto changes | Crypto changes |
| On Tuesday, the MPs on Treasury Committee will quiz the chief executive of the FCA, Nikhil Rathi, on moves to bring more cryptoasset activity into regulation. | On Tuesday, the MPs on Treasury Committee will quiz the chief executive of the FCA, Nikhil Rathi, on moves to bring more cryptoasset activity into regulation. |
| On Friday, the regulator said it was proposing to lift the ban on offering crypto exchange traded notes to retail investors. | On Friday, the regulator said it was proposing to lift the ban on offering crypto exchange traded notes to retail investors. |
| This would allow individual investors to put money into products that track the value of crypto. | This would allow individual investors to put money into products that track the value of crypto. |
| The ban has been in place since 2021. | The ban has been in place since 2021. |
| Additional reporting by Yasmin Malik |