The FCA and ASA jointly kicked off the education campaign.
Sharon Gaffka will help the agencies in the campaign.
Two regulatory bodies in the United Kingdom, the Financial Conduct Authority (FCA) and the Advertising Standards Authority (ASA), have launched a campaign to educate financial influencers primarily to stop them from promoting illegal 'get rich quick' schemes. The agencies also partnered with Sharon Gaffka, a prominent social media influencer in the country.
Regulators Educating Finfluencers
The two regulators' campaign will involve engaging with influencers and their agents and providing them with information on identifying illegal financial schemes. The FCA, which regulates the UK financial services market, will invite influencer agents and the Influencer Marketing Trade Body to an open roundtable discussion on illegal financial promotion.
"We've seen more cases of influencers touting products that they shouldn't be. They are often doing this without knowledge of the rules and without understanding of the harm they could cause their followers," said Sarah Pritchard, the FCA's Executive Director for Markets.
"We want to work with influencers so they keep on the right side of the law, as this will also help protect people from being shown scams or investments that are too risky."
Partnering with a Social Media Influencer
Gaffka participated in a popular British reality TV show and is a social media personality with more than 353,000 followers on Instagram. Though the agencies announced the partnership with Gaffka, her role in the campaign is not known. However, they might be tapping her experience to learn more about social media marketing and how influencers are approached.
"When you leave a show like Love Island, you are bombarded with opportunities to promote products and work with brands, if like me, you're new to this kind of work; it can be a little bit overwhelming," said Gaffka.
"This campaign with the FCA and ASA will hopefully make sure other influencers stay on the right side of the law and prevent them from unknowingly introducing their followers to scams or high-risk investments."
Regulators against Illegal Financial Scheme Promotion
Financial influencers o finfluencers make a massive impact on investing habits of retail investors. According to a CySEC study, 31 percent of retail investors in the country invested based on recommendations by these finfluencers.
Both the FCA and ASA are struggling to fight the rising promotion of fake financial products. Last year, the intervention of the FCA led to the withdrawal or amendment of 8,582 promotions of financial products, which is 14 times higher than the previous year.
However, the UK regulators are not alone in the fight against financial scams pumped by the so-called influencers. Australian financial market supervisor issued multiple warnings against the activities of influencers including Tyson Scholz, a 'finfluencer' famous for the name ASX Wolf, for breaching financial market laws.
In addition, the agencies in the United States fined millions of dollars on sports and entertainment celebrities, like Floyd Mayweather, DJ Khalid, and Kim Kardashian, for promoting fraudulent cryptocurrency schemes. A recent lawsuit by SEC, also named eight American celebrities for promoting TRX and/or BTT without disclosing details of their payments.
"We've worked hard to ensure that influencers are equipped with the training and advice they need to help them advertise responsibly. From setting up a dedicated webpage to highlight those who are publishing misleading content, to using cutting-edge data science to process more ads than ever, we're seeing influencers increasingly understanding and following the rules," said Miles Lockwood, the Director of Complaints and Investigations at the FCA.
Two regulatory bodies in the United Kingdom, the Financial Conduct Authority (FCA) and the Advertising Standards Authority (ASA), have launched a campaign to educate financial influencers primarily to stop them from promoting illegal 'get rich quick' schemes. The agencies also partnered with Sharon Gaffka, a prominent social media influencer in the country.
Regulators Educating Finfluencers
The two regulators' campaign will involve engaging with influencers and their agents and providing them with information on identifying illegal financial schemes. The FCA, which regulates the UK financial services market, will invite influencer agents and the Influencer Marketing Trade Body to an open roundtable discussion on illegal financial promotion.
"We've seen more cases of influencers touting products that they shouldn't be. They are often doing this without knowledge of the rules and without understanding of the harm they could cause their followers," said Sarah Pritchard, the FCA's Executive Director for Markets.
"We want to work with influencers so they keep on the right side of the law, as this will also help protect people from being shown scams or investments that are too risky."
Partnering with a Social Media Influencer
Gaffka participated in a popular British reality TV show and is a social media personality with more than 353,000 followers on Instagram. Though the agencies announced the partnership with Gaffka, her role in the campaign is not known. However, they might be tapping her experience to learn more about social media marketing and how influencers are approached.
"When you leave a show like Love Island, you are bombarded with opportunities to promote products and work with brands, if like me, you're new to this kind of work; it can be a little bit overwhelming," said Gaffka.
"This campaign with the FCA and ASA will hopefully make sure other influencers stay on the right side of the law and prevent them from unknowingly introducing their followers to scams or high-risk investments."
Regulators against Illegal Financial Scheme Promotion
Financial influencers o finfluencers make a massive impact on investing habits of retail investors. According to a CySEC study, 31 percent of retail investors in the country invested based on recommendations by these finfluencers.
Both the FCA and ASA are struggling to fight the rising promotion of fake financial products. Last year, the intervention of the FCA led to the withdrawal or amendment of 8,582 promotions of financial products, which is 14 times higher than the previous year.
However, the UK regulators are not alone in the fight against financial scams pumped by the so-called influencers. Australian financial market supervisor issued multiple warnings against the activities of influencers including Tyson Scholz, a 'finfluencer' famous for the name ASX Wolf, for breaching financial market laws.
In addition, the agencies in the United States fined millions of dollars on sports and entertainment celebrities, like Floyd Mayweather, DJ Khalid, and Kim Kardashian, for promoting fraudulent cryptocurrency schemes. A recent lawsuit by SEC, also named eight American celebrities for promoting TRX and/or BTT without disclosing details of their payments.
"We've worked hard to ensure that influencers are equipped with the training and advice they need to help them advertise responsibly. From setting up a dedicated webpage to highlight those who are publishing misleading content, to using cutting-edge data science to process more ads than ever, we're seeing influencers increasingly understanding and following the rules," said Miles Lockwood, the Director of Complaints and Investigations at the FCA.
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!