Dutch Authority for the Financial Markets (AFM) released an investigation on ‘finfluencers’:
The FCA is also stepping in, forcing brokers not to rely on “finfluencers”:
"Firms should ensure they have taken appropriate legal advice to understand their responsibilities prior to using influencers.”
I wonder if they will target individual bloggers next
Have to say after looking at a few of the posts, it seems the right move from regulators.
We’ll see. I doubt they would target individuals, however targeting the source of their revenue is big enough of a deal.
The regulator was critical of the fact Freetrade worked with an influencer who had gained widespread media interest around her story of “clearing her debt” and who was therefore likely to have vulnerable or indebted consumers among her followers.
In its notice, the FCA said: "The authority considers that the promotions provide consumers with the impression that they could reduce debt by following the steps taken by the social media influencer and use the dirm as a mechanism to make money.
“However, the authority considers this to be misleading as there are no guarantees that any investment will result in positive gains in the short or long term. Consumers already in debt are likely to be particularly vulnerable to this.”