Under the Finfluence | The FCA’s Escalating War on Illegal Advice

Online misinformation and illegal advice are at an all-time high, with 19,765 promotions online being amended or withdrawn by the FCA in 2024 – a substantial 97.5% increase on 2023. This dramatic rise means that more misleading or potentially harmful financial content is being fed through to consumers, putting your clients at greater risk of exposure to bad advice.

In 2025 alone, enforcement action from the FCA against unlicensed financial influencers rose by 174%, obtained by BrokerChooser via FOI request to the FCA. This jump in crackdowns highlights how quickly these threats are escalating and why vigilance is crucial to safeguard your client base.

With social media continuing to change how the consumer market accesses financial content, the regulator resumes fighting a growing battle against unlawful advice, attempting to protect your clients from harm.

Who are Finfluencers, and Why Should You Care?

Many finfluencers adhere to regulatory boundaries, but problems occur when unregistered individuals use social media to promote unregulated financial products or offer what appears to be personalised advice with permission.

For consumers, the line between lawful and illegal advice is blurry, with educated content, marketing, opinions, and regulated advice now running alongside one another online.

When does guidance become advice? Would your clients know the difference?

That grey area is where the dangers lie, and where advisers increasingly find themselves correcting misinformation before they can even begin meaningful financial conversations.

Where Do Finfluencers Operate? Who is Listening?

Unlawful advice thrives in fast, simplified formats. TikTok, Instagram Reels, Facebook Reels, YouTube Shorts – they’re all rife with short-form financial ‘figures’ who aim to reduce complex topics into short, concise snippets.

But who is consuming this information? Are your clients at risk?

Increasingly, younger audiences are experiencing their first exposure to financial services online. For many under-35s, social media is not just an entertainment outlet – it’s a flurry of engaging information and education.

If financial understanding is being shaped before a client has even spoken to a regulated adviser, what assumptions are you facing in your first meeting?

On 20/02/26, the FCA declared that seven finfluencers had been sentenced at Southwark Crown Court for their role in the promotion of an unauthorised foreign exchange (Forex) trading scheme. The defendants, aged between 28 and 39 years old, had a combined following of 4.5 million Instagram followers – a significant audience guided by unregulated information, putting their financial well-being at risk.

To read the full press release, click here.

A Structural Shift, Not a Temporary Spike

Looking at the stats, the rise in enforcement activity is clearly not a short-term surge – it’s the start of an ongoing battle against illegal advice. As financial content climbs through the social media ranks and reaches wider audiences, platform algorithms expose more young people to financial opinions, monetising their videos for personal gain.

This creates a new challenge for you and other advisers – clients armed with investment inaccuracies, half-truths and harmful financial direction.

This is no longer an enforcement story; it’s the escalation of a cultural shift in how financial advice is consumed and the risks of social media in the financial industry.

If misinformation enters the client journey at any point, especially before regulated advice, advisers will need to spend increasing amounts of time dismantling myths and countering objections before delivering value.

What This Means for You and Your Clients

Despite considerable action being taken, exposure to unfiltered financial content remains large.

Although prosecutions and arrests are on the rise, the speed and growing number of unlawful promotions circulating online cannot be prevented by enforcement alone.

Advisers are an essential component in preventing online financial fraud.

Use this quick checklist to help limit illegal advice affecting your clients. Each step highlights why it matters for you and your firm:

`1) How to Spot Suspicious Finfluencer Accounts

Educate your clients on spotting the red flags of illegal advice early. Things like guaranteed returns, urgency tactics and unrealistic performance claims are all common warning signs. A short conversation on assessing online financial content can prevent larger problems later and keep your clients safe long-term.

2) Tackling Illegal Advice Head-on

If a client references something they’ve seen online and you can sense the inaccuracy, it’s best to unpack this information, rather than dismiss it outright. Where did it come from? Is it illegal advice? What assumptions sit behind it? Treat these moments as chances to emphasise the difference between viral content and regulated advice.

3) Spread Your Message Online

We can clearly see an adviser-shaped gap in the digital landscape for a trusted voice. Advisers who capitalise and offer high-quality, compliant educational content are more likely to shape the narrative, helping to fight against these problems in the long run.

With the FCA continuing to adapt their approach, advisers’ vigilance on the frontlines is key amid the ongoing battle with unregistered finfluencers. The FCA can remove unlawful promotions, but only advisers can rebuild trust.

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Sources

Freedom of Information Request via FCA | BrokerChooser

FCA closes 1,600 websites as it fights financial crime | FCA

Influencers fined for issuing unauthorised financial promotions | FCA