UK uses Love Island star to warn finfluencers on crypto and investment schemes
The financial and advertising regulators of the United Kingdom have teamed up to send a warning to social media “finfluencers” telling them to stop promoting illegal “get rich quick” schemes or face law enforcement.
The Financial Conduct Authority (FCA) and the Advertising Standards Authority (ACA) made reference to cryptocurrencies and nonfungible tokens (NFTs) in its April 6 statement in its seven-part checklist to ensure finfluencers stay within the bounds of the law.
The checklist asks finfluencers to consider whether they’re the “right person” to be promoting the financial product and states that their followers may “lose all their money” from the investment. It also states:
In addition to conducting “due diligence,” social media influences should seek approval of the FCA and ensure that the advertisement is legal, truthful and properly labeled as an advertisement under ASA rules.
The FCA and ACA strongly suggest influencers to also check ScamSmart to ensure that they’re not promoting an investment scam. “If in doubt, don’t promote”, the checklist’s slogan states.
It is a crime to unlawfully promote financial products or services which carries a maximum sentence of two years’ imprisonment and an unlimited fine:
Sarah Pritchard, the FCA’s executive director explained that there has been a spike in illegal financial promotions of late.
“They are often doing this without knowledge of the rules and without understanding of the harm they could cause their followers,” she added.
We've partnered with @ASA_UK and @SharonNJGaffka to help educate social media #influencers about the risks involved in promoting #financial products. https://t.co/IwQkcc90a9
The FCA and ASA partnered with former U.K. Love Island contestant Sharon Gaffka
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