The UK’s Financial Conduct Authority (FCA), in coordination with eight other regulators worldwide, has launched a sweeping crackdown on illegal financial promotions by social media Finfluencers.

The coordinated "week of action" led to:

• 3 arrests and criminal charges in the UK,
  
  
• 7 cease-and-desist letters,
  
  
• 50+ public warnings,
  
  
• and over 650 takedown requests across social media platforms and unauthorized websites.
  
  

The regulators involved - from Australia, Canada, UAE, Hong Kong, and Italy - aim to curb a growing wave of unlicensed individuals promoting risky financial products under the guise of wealth, freedom, and success.

“They must act responsibly and only promote financial products where they are authorised to do so – or face the consequences,” said Steve Smart, FCA’s Executive Director of Enforcement.

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Why It Matters for Prop Firms

As the funded trading industry continues to work with influencers, this enforcement wave serves as a wake-up call. Prop firms need to:

• Ensure that affiliates and partners promote offerings within regulatory bounds, especially in regions like the UK or UAE.
  
  
• Avoid exaggerated or misleading marketing, particularly claims of guaranteed profits or risk-free success.
  
  
• Evaluate whether some promotional practices cross into regulated territory, especially when paired with monetary incentives or profit splits.
  
  

PropInsider will continue monitoring global regulatory developments affecting the intersection of social media, trading, and finance.

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